Alibaba

Alibaba is developing a new AI inferencing chip amidst US-China trade tensions and restrictions on Nvidia exports. This move is part of a broader effort by Chinese tech companies to create domestic chip solutions. Alibaba will use the chip to enhance its cloud infrastructure, offering computing power to customers. This complements, rather than replaces, its reliance on vendors like Nvidia. Fueled by AI-related products, Alibaba’s cloud division saw significant revenue growth. Other Chinese firms, including Baidu and Huawei, are also developing proprietary semiconductors.

Alibaba (BABA) reported a mixed Q1 fiscal year performance. Net income beat expectations with a 78% jump, driven by equity gains and the Trendyol sale. Revenue, however, fell short of estimates. Cloud computing revenue soared 26%, fueled by AI demand, with AI-related product revenue growing at a triple-digit rate for the eighth consecutive quarter. Despite macroeconomic headwinds in China, Alibaba’s stock showed resilience. Investors are optimistic about AI initiatives and investments.

Taobao Flash Delivery and Ele.me (Alibaba companies) have launched new racing suit-inspired uniforms for delivery riders, sparking online buzz. Beyond aesthetics, the high-performance uniforms prioritize practicality with windproof, water-resistant material, reflective strips, graphene lining, and smart helmets featuring AI assistance and safety sensors. The uniform includes a “Golden Rescue Information Pocket” for emergency data and a medical kit. This investment signals a shift towards professionalizing the delivery sector and enhancing rider safety and well-being, supported by Alibaba’s “City Rider – Orange Initiative.”

Chinese tech giants like Alibaba, ByteDance, and Tencent are aggressively recruiting AI talent for their 2026 campus programs. Recruitment numbers are up year-over-year, with a strong focus on AI research and development. ByteDance plans a 20% increase in hiring, while AI roles comprise over 60% of Alibaba’s openings. The competition is fierce, with reports of high compensation, including daily rates for AI interns, highlighting the strategic importance of AI in these companies’ future.

Reports indicate that Cai Jingxian (“Duolong”), a highly respected Alibaba engineer and known as the “Code God,” has left the company. Cai, Taobao’s first programmer who joined Alibaba in 2000, was a core engineer responsible for building Taobao’s core transaction and forum systems. He became an Alibaba partner in 2014, recognized for his significant contributions to Taobao. Alibaba’s 2023 report confirms Cai is no longer a partner, fueling speculation about his departure and its potential impact on Alibaba’s technology leadership.

Alibaba’s 88VIP program now offers a discounted Hema X Gold membership (¥88/$12 USD) to its subscribers, a significant reduction from the usual ¥258 ($36 USD). Existing Hema members can also leverage this benefit and re-enroll. This move, part of 88VIP’s 7th-anniversary revamp, includes new perks like preferential delivery, travel benefits, and discounted tickets. Hema saw a doubling of X Gold memberships after integrating with 88VIP. The enhanced program boasts over 20 benefits, aiming to boost customer loyalty within Alibaba’s ecosystem.

Alibaba’s 88VIP membership program is expanding its perks without raising prices, adding over 10 new exclusive benefits. The upgrade combines features from previous programs, offering complimentary Hema X membership, prioritized Ele.me deliveries, Feizhu perks, movie ticket discounts, and Gaode ride-hailing vouchers. This builds upon previous enhancements and brings the total number of benefits to over 20, covering dining, entertainment, travel, and daily life. With over 50 million members, 88VIP is influential in Chinese consumer spending.

IDC’s “AI Search Product Assessment, 2025” evaluates general-purpose search products based on user data, product performance, and technological capabilities. Alibaba’s Quark application excelled in product performance, achieving a score of 4.8 out of 5. This performance surpassed Baidu, positioning Quark as a leader in this key dimension according to the IDC report. The assessment underscores Quark’s strong capabilities.

At WAIC 2025, Alibaba’s Quark showcased its “AI Super App” and a range of AI features, including AI Writing, Image Generation, and a Deep Research tool capable of generating complex reports. The Quark AI Glasses, integrating the Tongyi Qianwen model, also drew significant attention. Notably, Quark’s AI Camera and “Chief Physician-Level AI Doctor” integrated into its AI search proved popular, highlighting Quark’s versatility in addressing diverse user needs from work to healthcare.

China’s on-demand delivery market is experiencing intense competition as Meituan, Fliggy (Alibaba), and JD.com engage in a subsidy war. This weekend saw a surge in promotional offers, benefiting consumers seeking immediate delivery services. The players are vying for market share by attracting users with heavily discounted prices and incentives. The long-term impact of this subsidy battle on the on-demand delivery landscape remains to be seen.