On August 20, news emerged that Alibaba Group (09988.HK) had unveiled its financial performance for the first quarter of fiscal year 2027. During the analyst conference call, CEO Wu Yongming emphasized that artificial intelligence (AI) stands as the pivotal growth engine for Alibaba Cloud. In this particular quarter, Alibaba's AI offerings generated an annualized revenue exceeding RMB 49.5 billion (equivalent to USD 7.3 billion), constituting 35% of Alibaba Cloud's external commercial revenue. Moreover, the gross margins of AI products outperformed the average margins of cloud products.