Q1: Update on AI-driven cloud growth and monetzation strategies for Taobao/Tmall

A1 (Eddie Wu, CEO):
- Cloud revenue grew 18% year-over-year, primarily driven by AI-related demand.
- AI-related product revenue has maintained triple-digit growth for 7 consecutive quarters.
- New AI customers span traditional industries like manufacturing and agriculture, not just tech sectors.
- Smaller AI models for edge devices still drive cloud usage as they often require cloud support.
- Larger models (32B+ parameters) are better suited for cloud deployment due to resource requirements.

A2 (Jiang Fan, CEO of Alibaba E-commerce):
- Long-term focus on stabilizing market share while improving monetization.
- Recent initiatives like Quanzhan Tui (全站推) and software service fees have increased monetization from previously under-monetized merchants.
- Expect continued monetization improvement in coming quarters.
- Aim to balance user experience, business efficiency, and monetization through AI and other innovations.

Q2: Plans for $10 billion investment in instant retail with Ele.me

A (Jiang Fan):
- Alibaba has been in instant retail for years through investments in Ele.me and Freshippo.
- Instant retail addresses a massive market (potentially 1 billion users in China).
- Taobao's large user base provides a natural foundation to expand into instant retail.
- Leveraging Ele.me's merchant network and mature logistics system.
- Initial "Taobao Flash Sale" trials exceeded expectations in scale and efficiency.
- Short-term focus on converting Taobao users to instant retail users.
- Aggressive investment planned to drive user adoption and integration with e-commerce.

Q3: 618 Shopping Festival strategy and synergies with instant retail

A (Jiang Fan):
- 618 campaign officially starts tomorrow with some changes in marketing and pacing.
- Aim to adapt to the new competitive environment while offering good consumer experiences.
- No intentional strong integration between instant retail and 618 promotions at this stage.
- Focus remains on growing the instant retail user base within Taobao.
- Full results of 618 campaign to be reported in the next quarterly call.

Q4: Drivers of Customer Management Revenue (CMR) growth and impact on profitability

A (Toby Xu, CFO):
- CMR growth driven by improvement in take rate.
- Take rate benefited from software service fee and increasing penetration of Quanzhan Tui (全站推).
- Expect continued positive impact on monetization in the new fiscal year.
- Investments in instant retail may put some pressure on Taobao/Tmall group's EBITA in coming quarters, but seen as strategic for long-term growth.

Key Takeaways:
1. AI continues to be a major growth driver for Alibaba Cloud, with expanding adoption across industries.
2. E-commerce monetization is improving through new initiatives, balancing user experience and business efficiency.
3. Significant investment planned in instant retail, leveraging Taobao's user base and Ele.me's capabilities.
4. 618 Shopping Festival adapting to competitive landscape, with full results to be shared next quarter.
5. Short-term profitability may face some pressure due to investments, but management views these as critical for long-term growth and competitiveness.

Disclaimer: This earnings call summary is generated by AI and is for informational purposes only. Due to technical limitations, inaccuracies may exist. It does not constitute investment advice or commitments.