And we are indeed seeing among paying users an increasing proportion of new users coming lower-tier cities or being young people or being older consumers. Looking at the numbers from this year’s 618 shopping festival, we see several trends there that will also help to answer your question about the 88 VIP members and the proportion of sales to those members. Again, we’ve seen a strong interest on the part of users in value for money offerings. And in the 618 shopping festival, we’ve certainly seen a lot of new young consumers coming to take part. Another driver of sales this year has been the launch of new products with 3 million new brands being launched by products on Tmall at this year’s 618, driving significant sales in consumer electronics, appliances, apparel and other categories.
So coming back to the 88 VIP members, what we see certainly is they’re attracted by those new products that are being launched as well as by the broadened assortment of quality offerings.
Operator: Thank you. Your next question comes from Gary Yu with Morgan Stanley. Please go ahead.
Gary Yu: I have one question related to cloud and a follow-up on AI. Just wanted to check when do we expect to see cloud revenue grow to kind of further accelerate to a higher level given there appears to be some reluctancy for corporate spend on IT spending? And a related question on AI given the fast adoption of AI offerings that we have launched recently, how should we look at the time line and roadmap from a regulatory and also monetization standpoint?
Daniel Zhang: I think if you look at the cloud landscape in China, I think the total cloud infra as a percentage of the IT infra still in a lower — actually, in a relatively low percentage as compared to the U.S. peers. So we still — we see still the huge potential first in this cloud infra penetration. Secondly, I think with this AI revolution, I think that this brings incremental opportunities, and because today, all the companies want to use our AI capabilities to upgrade their services and in their own application. So — but they need a high computing — high-performance computing power to support this operation, not only in today’s training, but also in the influence services to be provided. So I think these two are, we believe, the primary growth engine for the long term.
If you look at our own performance, I think right now, we are taking some time to digest some impact from the, first, from the decline of the demand postpaid, as we said in our script, for example, for many services relating to remote work, remote education as well as the online streaming, the demand, obviously, is lower post dynamic, which I think is a very important factor to drive our growth rate. And also, we also have some impact from the decline in demand from one top customers, one of the top customers. So I think we need to still need some time to digest this. Also, we’re also making some proactive measures to make sure we focus on public cloud growth and focus on high-quality cloud service growth. So I think with this, the right sales structure and the customer profile, we are better positioned, we’ll be in a better position to have a long-term sustainable growth.
Yes. For the second question, how to monetize this AI opportunity, I think the answer is very straightforward. It’s like as a cloud service provider, our best monetization model is to have all the all the AI companies, all the models using Alibaba cloud infra, our high-performance, low-cost computing power to do their AI. So I think while we do our foundational model in Ali Cloud and deploy this and deploy on our cloud infra is to not only just run our own model is to help our cloud industry partners are to use this foundational model to do their fine tune, to build their own model in their vertical industries and in their own customized applications. So I think this is — I think for us, I think this is a huge opportunity. And I think we would do everything we can to make sure we provide best-in-class services to help these new generations of innovation to be occurred on our cloud infra.
