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Alibaba pins hopes on AI as quarterly net profit drops
Alibaba’s AI revenue grew 36% year-on-year with 300 million monthly active users for its Qwen AI models despite a 66% profit drop from e-commerce pressures, company said.
- 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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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…
Coverage Details
Total News Sources26
Leaning Left2Leaning Right8Center7Last UpdatedBias Distribution47% Right
Bias Distribution
- 47% of the sources lean Right
47% Right
12%
C 41%
R 47%
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