Alibaba Cloud Turns Profitable While Oracle Lands $30B Deal – What It Means for the Cloud Market

Alibaba Cloud announced that its 2024 revenue reached 1,134.99 billion RMB, making it the first Chinese cloud vendor to achieve profitability.

In contrast, the U.S. second‑tier cloud provider Oracle recently signed a $30 billion cloud contract, an amount roughly twice Alibaba Cloud’s annual revenue.

According to IDC, the Chinese public‑cloud services market was valued at $210.8 billion (≈1,518.3 billion RMB) in the first half of 2024, and the IaaS segment is projected to reach 948.2 billion RMB in the second half.

Overall, China’s public‑cloud revenue is about 2,450 billion RMB, and Oracle’s single deal alone nearly matches that total, underscoring a huge TOB (business‑to‑business) service gap between China and the United States.

The United States can nurture top‑tier TOB enterprises thanks to a more conducive environment.

Oracle’s stock hit a new high, and the $30 billion contract is three times the company’s annual infrastructure‑business revenue.

Oracle’s share price has risen 31.99% year‑to‑date, giving it a market value exceeding $6 trillion—about four times that of Alibaba’s parent company.

Oracle CEO Khosla announced a strong start to fiscal year 2026, with Multi‑Cloud database revenue growing over 100%.

The company has signed multiple large cloud‑service agreements, one of which is expected to generate more than $30 billion in annual revenue beginning FY2028, a milestone nearly three times its FY2025 data‑center revenue.

U.S. President Trump announced the “Stargate” artificial‑intelligence infrastructure investment project, planning to invest $5 trillion over four years, with Oracle participating in its implementation.

Oracle also plans to build a new data center in the United States, intending to purchase about $400 billion worth of NVIDIA chips to meet its computing demands.