Alibaba profit plunges 75% as it ramps up AI infrastructure spending

Alibaba Group Holding is expected to further accelerate cloud growth, expand operating margins and achieve faster payback on artificial intelligence investments, analysts say, as the Chinese tech giant reaches the halfway mark of its massive 380 billion yuan (US$56 billion) AI infrastructure spending plan. “The most important incremental message, in our view, is that cloud growth has not yet peaked,” Nomura analysts said in a research note on Friday. The comment followed Alibaba’s Thursday...

Alibaba has posted a 75 per cent drop in quarterly profits as it ramped up spending on artificial intelligence infrastructure. The group recorded a nine per cent rise in revenue to 268.95bn yuan (£29.6bn) for the April-to-June quarter, narrowly ahead of analyst expectations of 268.88bn yuan. However, earnings were hit by the company’s accelerating investment...

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 also showed operating cash flow of RMB22.95 […]

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)

Spending on artificial intelligence infrastructure has resulted in Alibaba registering a 75 per cent drop in profit for the latest quarter from the year before.

Spending on artificial intelligence infrastructure has resulted in Alibaba registering a 75 per cent drop in profit for the latest quarter from the year before.

Cloud and AI product revenue accelerated in the June quarter, but a 75% drop in net income extended Alibaba's run of profit misses to a fifth straight quarter.

China's Alibaba reports a 75% drop in profit for the latest quarter from the year before to roughly $1.6 billion as it invests heavily in AI infrastructure

Alibaba’s net profit fell 75% in the June quarter, to $1.54bn. The cause was not a weak business. It was the bill for building one. Capital spending reached $9.98bn in three months, up 75% on the same quarter last year, according to the results announcement. In the same accounts, the cloud unit that spending pays […] This story continues at The Next Web

Net income fell to 10.54 billion yuan in the June quarter, while cloud revenue grew 45% on surging AI demand

Alibaba's net income tumbled three-quarters to 10.5 billion yuan ($1.6 billion) and it registered a free-cash outflow of more than $6.6 billion, reflecting the rising cost of AI projects and computing infrastructure.

Alibaba Group Holding on Thursday reported revenue growth of 45 per cent for its cloud and artificial intelligence division in the June quarter, driving adjusted profit to a better-than-expected 27.3 billion yuan (US$4 billion). AI Cloud and Compute Services, the Chinese tech giant’s new reporting segment covering its cloud business and T-Head chip arm, posted 48.4 billion yuan in revenue for the three months ended June 30, marking its fastest growth pace in 22 quarters. The segment’s AI-related...

Alibaba shares dropped 7.6% on Thursday after the company missed analyst expectations for both revenue and net income in its fiscal fourth quarter, ending in March. The Chinese e-commerce giant reported revenue of RMB 236.5 billion ($32.6 billion), slightly below the RMB 237.2 billion forecast. Net income came in at RMB 12.4 billion ($1.72 billion) […]