--- title: Alibaba’s profit fell 75% as quarterly AI spending hit $10bn description: Alibaba's net profit dropped 75% to $1.54bn in the June quarter as capital spending on AI infrastructure hit $9.98bn, up 75% year on year. The cloud unit that... canonical: https://daily.dev/posts/alibaba-s-profit-fell-75-as-quarterly-ai-spending-hit-10bn-tpvwaywix twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Alibaba’s profit fell 75% as quarterly AI spending hit $10bn | daily.dev og:description: Alibaba's net profit dropped 75% to $1.54bn in the June quarter as capital spending on AI infrastructure hit $9.98bn, up 75% year on year. The cloud unit that... og:url: https://daily.dev/posts/alibaba-s-profit-fell-75-as-quarterly-ai-spending-hit-10bn-tpvwaywix og:image: https://api.daily.dev/og/posts/tpvwaYwiX.png og:image:alt: Alibaba’s profit fell 75% as quarterly AI spending hit $10bn og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Alibaba’s profit fell 75% as quarterly AI spending hit $10bn **[The Next Web](https://daily.dev/sources/tnw)** · 5 min read · 1 upvotes · 0 comments ## Summary Alibaba's net profit dropped 75% to $1.54bn in the June quarter as capital spending on AI infrastructure hit $9.98bn, up 75% year on year. The cloud unit that spending funds saw segment EBITA jump 133% and revenue grow 45%, the fastest in 22 quarters. Free cash flow turned deeply negative, and the new AI Labs and Applications segment (housing Qwen) lost $2.04bn. A €550m EU DSA fine against AliExpress and a $657m goodwill impairment also hit the accounts. Alibaba opened weights for its 2.4-trillion-parameter Qwen3.8-Max model and is targeting $100bn in cloud and AI revenue within five years, even as core e-commerce revenue shrinks. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Questions this post answers ### Why did Alibaba's profit fall 75% in a recent quarter? Alibaba's net profit fell 75% to $1.54bn in the June quarter mainly because capital spending on AI infrastructure reached $9.98bn, up 75% year on year. The company also booked a provision for a €550m EU Digital Services Act fine against AliExpress and a $657m goodwill impairment, while revenue still rose 9% to $39.64bn. _Track how AI infrastructure spending reshapes earnings across major tech companies on daily.dev._ ### How much did Alibaba Cloud's AI business grow in revenue and profit? Alibaba's AI Cloud and Compute Services division brought in $7.14bn, up 45% year on year, its fastest growth in 22 quarters. Its adjusted EBITA reached $830m, up 133%, with a 12% EBITA margin. AI-related product revenue within the segment hit $1.82bn and has grown in triple digits for twelve consecutive quarters. _Compare cloud AI growth numbers across vendors on daily.dev before weighing infrastructure investments._ ### Is Alibaba's Qwen AI business profitable? No, the AI Labs and Applications segment holding Qwen and QwenWork made $492m in revenue, up 16%, but lost $2.04bn at the adjusted EBITA line, up from a $475m loss a year earlier. Alibaba attributed the loss to AI investment and the cost of running inference for the Qwen consumer app. _Follow how open model providers like Qwen balance distribution against inference costs on daily.dev._ ## Similar posts on daily.dev - [Chinese profits rose 25.7%. 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The company also booked a provision for a €550m EU Digital Services Act fine against AliExpress and a $657m goodwill impairment, while revenue still rose 9% to $39.64bn. Track how AI infrastructure spending reshapes earnings across major tech companies on daily.dev."}},{"@type":"Question","name":"How much did Alibaba Cloud's AI business grow in revenue and profit?","acceptedAnswer":{"@type":"Answer","text":"Alibaba's AI Cloud and Compute Services division brought in $7.14bn, up 45% year on year, its fastest growth in 22 quarters. Its adjusted EBITA reached $830m, up 133%, with a 12% EBITA margin. AI-related product revenue within the segment hit $1.82bn and has grown in triple digits for twelve consecutive quarters. 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