MoneyThe story, in brief
Alibaba's core profit plunges 84% even as AI and cloud growth accelerate
84%. That's how much Alibaba's core profit just fell—but here's why the company is betting it all on AI infrastructure.
The KeyNews take
Why it matters
Alibaba is sacrificing near-term profitability to build AI and cloud dominance, signaling a major strategic shift in how Asian tech giants are competing in the AI economy. This matters because it shows the capital intensity required to stay competitive in foundation models and infrastructure.
The key facts
4 to knowCore profit plunged 84% in March quarter
Heavy investments in tech and e-commerce driving margin compression
AI and cloud growth accelerating despite profitability decline
Strategic capex reallocation toward AI infrastructure
Go to the source
CNBC Technologycnbc.com
Publisher excerpt: Alibaba on Wednesday said its core profitability plunged in the March quarter amid heavy investments in tech and e-commerce.