Alibaba quarterly profit drops 75% as AI investment spending grows

Alibaba reported a 75% decline in quarterly profit on Thursday, attributing the drop to significant capital expenditure in artificial intelligence infrastructure. The Hong Kong- and U.S.-listed technology giant disclosed these figures as part of its latest financial results, highlighting a strategic shift toward long-term AI development.

Despite the sharp decrease in overall profit, the company experienced a 45% increase in revenue generated from its AI-related services. This growth suggests that while heavy infrastructure investments are currently impacting the bottom line, the company is seeing a positive financial trajectory within its specific AI business segments.