Alibaba says if artificial intelligence is like electricity, then its cloud computing network is the power grid: money is powering AI, not selling – Alibaba GR HLDGS (NYSE: BABA)

Alibaba Group Holdings Co., Ltd. dad Executives say the real value of AI will come from cloud infrastructure, not the model itself.

what happened: On Thursday, company executives settled on Alibaba’s third-quarter revenue call DeepSeek Free large-scale models and AI monetization strategies.

Executives believe that functions are becoming increasingly similar, whether it is open source or closed AI models.

“If AI, AI, in this new era, is like electricity, then our cloud computing network is like a grid with electricity,” said executives.

See also: Alibaba CFO Toby Xu’s stock number drops by 5% due to the company founded by Jack MA in Stellar Q3 results

Instead of focusing on charging AI models, Alibaba regards cloud computing as the main driving force for AI monetization.

“If you ask me what the monetization path is today, it’s definitely our cloud computing products that can host and support the operation of these clouds,” the representative said.

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Why it matters: this Jack Horse-Co-created e-commerce giant reported fiscal revenue in the third quarter of $38.38 billion, up 8% year-on-year, surpassing the analyst consensus of $38.19 billion.

Income from Tang Bao and Tmall Group It rose 5% to $18.64 billion, while Cloud Intelligence Group’s growth rate was 13% to $4.35 billion.

Alibaba’s capital expenditure reached $31 billion this quarter, nearly doubled. The company said it will invest more over the next three years than the last decade combined.

Price action: At the time of writing, Alibaba shares rose 0.82% to $137.09 in after-hours trading, before jumping to 8.09% to $135.97 in regular meetings Thursday, according to Benzinga Pro.

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