Alibaba profit falls 75% as it ramps up AI infrastructure spending
Alibaba reported 9% higher revenue for April–June, driven by strong AI demand in its cloud business. AI cloud and compute services revenue rose 45% to 48.44 billion yuan in the June quarter, helped by a model-as-a-service offering topping 16 billion yuan in annual recurring revenue. The company will keep investing in frontier AI despite weak current monetization amid competition.
Coverage (5)
- Alibaba's profit takes a hit as data centre bill spikes (thestack.technology)
- Alibaba quarterly profit drops 75% as AI investment spending grows (abcnews.com)
- Alibaba profit falls 75% after ramping up AI infrastructure spending (reuters.com)
- Alibaba Profit Dives 75% After AI Spending Hits $10 Billion (bloomberg.com)
- Alibaba shares fall 5% as AI spending drives 75% drop in net income (cnbc.com)