Alibaba saw its profit plummet in the first quarter of its fiscal year, as the Chinese e-commerce giant continued to invest heavily in artificial intelligence, in a race to maintain leadership in the sector.
Alibaba sees 76% drop in profit amid strong investments in AI
Alibaba saw its profit plummet in the first quarter of its fiscal year, as the Chinese e-commerce giant continued to invest heavily in artificial intelligence, in a race to maintain leadership in the sector. The company, based in Hangzhou,...
Profit was below expectations, while revenue exceeded estimates. "We delivered a strong quarter, driven by improved commercialization of our end-to-end AI capabilities," said Eddie Wu, CEO of Alibaba Group.
- According to Wu, Alibaba Cloud's external revenue growth accelerated to 45%, while revenue from AI-related products recorded triple-digit expansion for the 12th consecutive quarter.
- The numbers are released at a crucial time for Alibaba, which has been reinforcing its focus on AI.
Editorial reading aid based only on information contained in this story and its identified source.
The company, based in Hangzhou, reported this Thursday (20) that net profit fell 76%, to 10.54 billion yuan (US$1.57 billion), while revenue increased by around 8.6% compared to a year earlier, to 268.95 billion yuan.
Profit was below expectations, while revenue exceeded estimates.
"We delivered a strong quarter, driven by improved commercialization of our end-to-end AI capabilities," said Eddie Wu, CEO of Alibaba Group.
According to Wu, Alibaba Cloud's external revenue growth accelerated to 45%, while revenue from AI-related products recorded triple-digit expansion for the 12th consecutive quarter.
The numbers are released at a crucial time for Alibaba, which has been reinforcing its focus on AI. The company continues to update its family of models and integrate technology into its core ecosystem. Recently, it launched Qwen3.8-Max, considered one of the largest open source models in the world.
Citi highlighted an "accelerating AI race" in China as model developers move faster in releasing increasingly powerful versions. Source: Dow Jones Newswires.
*Content translated with the help of Artificial Intelligence, reviewed and edited by the Broadcast editorial team, Grupo Estado’s real-time news system.
Read Also: Post office delivers purchases made on Paraguayan websites to Brazil