TechBloomberg Tech1h ago

Alibaba Profit Dives 75% as AI Spending Ratchets Up

TL;DRAlibaba's profits dropped 75% due to massive AI infrastructure investments hitting $10 billion quarterly.

Why it matters: Shows how aggressive AI competition forces tech giants to sacrifice near-term earnings for long-term positioning.

Alibaba Group Holding Ltd.’s profit plunged more than 75% after the company increased quarterly capital spending to almost $10 billion to safeguard its position in the global AI arena. Bloomberg's Minmin Low reports. (Source: Bloomberg)

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Source: Bloomberg Tech · Opens in new tab