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Alibaba pins hopes on AI as quarterly net profit drops

On Thursday, Alibaba reported quarterly net profit plunged 66% to 15.6 billion yuan , while total revenue stood at 284.8 billion yuan, missing Bloomberg estimates.
Facing price wars and sluggish consumption in China, Alibaba's core e-commerce business has been squeezed while the company ploughs tens of billions into artificial intelligence.
CEO Eddie Wu said Thursday that "AI is and will continue to be one of our primary growth engines," with Qwen's consumer interface surpassing 300 million monthly active users and Cloud Intelligence Group revenue up 36 percent.
The company is consolidating AI development and services teams under the Alibaba Token Hub, a restructuring aimed at improving collaboration and focusing on profitability.
Across China, tech titans are racing to develop AI agents that execute real-world tasks, while OpenClaw's unexpected boom and debate over 'token' as a computing utility have raised cybersecurity concerns.

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26 Articles

Fast Company

Lean Left

Alibaba stock is falling as it spends heavily on AI. CEO Eddie Wu insists the tech will be its main growth driver

A significant downturn in profit is one of multiple disappointments in the Chinese technology company’s latest financial results.

2 days ago

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Zero Hedge

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BABA Shares Crash Most In Six Months As Net Income Plunge Overshadows AI Progress

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

2 days ago·United States

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Alibaba pins hopes on AI as quarterly net profit drops

China's Alibaba said Thursday that revenue from AI-related products showed strong momentum, even as the tech giant reported a 66 percent year-on-year drop in quarterly net profit.

2 days ago

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retaildetail.eu

Why Alibaba is turning to AI as a lifeline

Alibaba has taken a beating in recent months. In the quarter ending in December, profits plummeted, while the only growth in retail was driven by same-day delivery in China and (to a small extent) by its international operations.

1 day ago

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technewstube.com

Alibaba's AI and cloud growth cushions slowing earnings but raises profit questions

Alibaba Group reported modest overall revenue growth while disclosing a sharp fall in operating income, underlining a tension between investment-led expansion in AI and near-term profitability.

1 day ago

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ts2.tech

Alibaba Stock Falls After Earnings Miss as AI Cloud Growth Fails to Offset China Price War

Alibaba shares fell Thursday after the company missed quarterly revenue and net income estimates, with net income dropping 66% to 15.63 billion yuan for the December quarter. Cloud revenue rose 36%, but core commerce margins remained under pressure amid weak Chinese demand and heavy spending on delivery and discounts. U.S.-listed ADRs dropped about 1.6% in premarket trading. The post Alibaba Stock Falls After Earnings Miss as AI Cloud Growth Fai…

2 days ago

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