Alibaba’s AI spending lifts capex 75% as quarterly profit falls 76%

Alibaba Group Holding Ltd. reported RMB268.95 billion in revenue for the quarter ended June 30, up 9% year on year, while net income attributable to ordinary shareholders fell 76% to RMB10.54 billion. Capital expenditure rose 75% to RMB67.68 billion, driven by increased investment in AI infrastructure. Revenue from Alibaba's AI cloud and computing services reached RMB48.44 billion, up 45%, and AI-related product revenue grew at a triple-digit rate for the 12th consecutive quarter.

Alibaba reported RMB268.95 billion in revenue for the quarter ended June 30, up 9% year on year, while net income attributable to ordinary shareholders fell 76% to RMB10.54 billion. Capital expenditure rose 75% to RMB67.68 billion, mainly as the company increased investment in AI infrastructure. Alibaba’s June-quarter results https://www.alibabagroup.com/en-US/document-2026456290057781248 also showed operating cash flow of RMB22.95 billion. Revenue from Alibaba’s AI cloud and computing services reached RMB48.44 billion, up 45%. AI-related product revenue reached RMB12.38 billion and continued to grow at a triple-digit rate for the 12th consecutive quarter. The company also reorganized its e-commerce, cloud-computing and AI-model businesses into new operating groups. TechNode reporting