Its artificial intelligence (AI) and cloud businesses are growing at a dramatically faster pace than its traditional e-commerce operations, while management is pouring enormous amounts of capital into building an AI ecosystem. It is beginning to demonstrate operating leverage as those workloads scale across its infrastructure. The more customers use the platform, the more efficiently Alibaba can spread the enormous fixed costs of computing infrastructure across its growing revenue base. Above that sits Alibaba Cloud, which provides the computing infrastructure and tools developers need to train, deploy, and run AI applications. The tech company is even developing its own AI chips through its T-Head semiconductor business.