Chinese e-commerce giant Alibaba Group Holding saw profit surge 239 per cent cent in the December quarter to beat analysts' estimates, as the company's cloud computing services unit posted strong growth.

Chief executive Eddie Wu said AI was "the kind of opportunity for industry transformation that only comes around only once every few decades."

Alibaba's shares opened 10% higher in Hong Kong on Friday to reach their highest level in more than three years, after it reported third-quarter revenues just above analysts' estimates and said it plans to invest more in e-commerce and AI.

Alibaba's Hong Kong-listed shares jumped 14.56 percent on Friday following better-than-expected quarterly earnings and a commitment from management to make