Alibaba cloud revenue rises 45% even as AI spending weighs on profit

Alibaba Group Holding Ltd. reported a 45% increase in cloud revenue for the quarter ended June 30, 2026, even as heavy spending on artificial intelligence infrastructure weighed on overall profitability, according to CNBC Technology. The company's cloud division, Alibaba Cloud, saw revenue rise to $12.3 billion, but operating income fell 12% to $4.5 billion due to AI-related investments. Alibaba's CEO Eddie Wu said the company remains committed to expanding its AI capabilities despite the short-term profit impact.