Alibaba Shares Fall 4% as AI Spending Drives 75% Drop in Net Income

Alibaba’s profit dives 75% after amping up AI spending

Alibaba operates the Qwen app, an all-in-one AI assistant handling daily tasks like shopping and payments.

Alibaba’s AI cloud growth surge drives earnings despite soaring tech spending

Alibaba Group Holding on Thursday reported revenue growth of 45 per cent for its cloud and artificial intelligence division in the June quarter, driving adjusted profit to a better-than-expected 27.3 billion yuan (US$4 billion). AI Cloud and Compute Services, the Chinese tech giant’s new business segment covering its cloud business and T-Head chip arm, posted 48.4 billion yuan in revenue for the three months ended June 30, marking its fastest gr…

Alibaba cloud revenue rises 45% even as AI spending weighs on profit

Alibaba shares fall 4% as AI spending drives 75% drop in net income

Alibaba earnings today: can AI cloud growth finally break its losing streak?

Alibaba reports June-quarter results on Thursday with investors looking to its cloud business to end a four-quarter run of earnings disappointments. The company will release results before the US market opens, followed by a conference call at 7:30 a.m. ET. Alibaba enters the print with renewed enthusiasm around Qwen and cloud computing, but a tougher test: whether rapid AI growth is becoming profitable enough to offset weaker Chinese consumption…