Alibaba's AI growth came with a profit hit.
AP reported that Alibaba's latest quarterly profit fell 75% to 10.5 billion yuan. Quarterly revenue rose 9% to nearly 269 billion yuan. Revenue from AI cloud and compute services rose 45% to 48.4 billion yuan. Capital expenditures rose 75% to 67.7 billion yuan.
Verified 12:18 AM PDT · 2 original sources
Alibaba says cloud and AI revenue will keep accelerating. The numbers make the cost hard to ignore. Chips, compute capacity, and agent demand are pulling cash forward before Alibaba proves the profit case.
Watch whether Alibaba's AI cloud revenue growth stays above capex growth. Watch whether Qwen adoption turns into paid enterprise work. Watch whether the company raises more capital for AI infrastructure.
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