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.

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

Alibaba Group Holding on Thursday matched Wall Street expectations for third-quarter revenue, on strong year-end sales, highlighting the success of its strategy to attract cost-conscious consumers. The company's revenue was 280.

Alibaba on Thursday reported third-quarter revenues just above analysts' estimates on strong year-end sales, showing that the e-commerce group's strategy to attract cost-conscious consumers has helped to revive its performance.