Alibaba reported a stronger September quarter on Tuesday, buoyed by the blockbuster launch of its redesigned Qwen AI app and a sharp pickup in cloud-computing revenue, even as net profit fell sharply.The Chinese tech major said revenue for the three months ended September 30 rose 5% year-on-year to 247.8 billion yuan ($35 billion), ahead of analyst expectations, AFP reported. Shares listed in the US climbed after the company disclosed that Qwen, its new AI chatbot rivaling DeepSeek and OpenAI’s ChatGPT, crossed 10 million downloads in its first week.Chief executive Eddie Wu said the company is deepening its push into artificial intelligence and related infrastructure.“We have entered into an investment phase to build long-term strategic value in AI technologies and infrastructure,” Wu said.Cloud Intelligence Group revenue jumped 34%, hitting 39.8 billion yuan, with AI-related products recording triple-digit growth for the ninth straight quarter.Alibaba has spent around 120 billion yuan on AI and cloud infrastructure over the past four quarters, on top of its previously announced 380-billion-yuan commitment over three years.Net income attributable to ordinary shareholders fell 52% to 21 billion yuan, reflecting heavy investments and pressure from newer business lines such as instant commerce.Analysts said Qwen’s early traction underscores Alibaba’s competitive advantage in China, where ChatGPT is unavailable. China Merchants Securities analysts Crystal Li and Tommy Wong said the launch was “supported by Alibaba’s prolonged investment and cutting-edge capabilities in foundational models”.Alibaba’s US-listed shares have rallied nearly 90% over the past year, defying concerns that AI stocks may be overheating globally. The stock closed 5% higher on Monday after the Qwen milestone.Proactive Investors’ Emily Jarvie noted that Qwen’s rapid scale-up makes it “one of the fastest-growing AI apps in China”.The company has also faced renewed attention in recent weeks following a Financial Times report alleging it provides technology support and user data to Chinese authorities and the military.An Alibaba spokesperson told AFP “the assertions and innuendos in the article are completely false”.Alibaba, which runs some of China’s largest e-commerce and cloud platforms, is positioning itself as a major contender in the global AI race through deeper investment in models, chips and computational infrastructure.