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

Alibaba reported revenue of RMB268.95 billion for the quarter ending June 30, marking a 9% year-on-year increase. However, net income attributable to ordinary shareholders plummeted 76% to RMB10.54 billion. This profit decline coincides with a 75% surge in capital expenditure, which reached RMB67.68 billion. The company attributed this spending increase primarily to expanded investments in AI infrastructure. Additionally, the June-quarter financial results indicated that the company's operating cash flow stood at RMB22.95 billion.