Alibaba’s AI Arm Surges 34% Though Big Spending Hits Profit

Bloomberg TechnologyTuesday, November 25, 2025 at 10:41:55 AM
Alibaba’s AI Arm Surges 34% Though Big Spending Hits Profit
  • Alibaba Group Holding Ltd. reported a 34% revenue growth in its cloud business, surpassing projections, despite a significant decline in profit due to increased spending on consumer subsidies and data centers to capitalize on the AI boom.
  • This growth in revenue is crucial for Alibaba as it reflects the company's strategic investment in AI and cloud services, positioning it competitively in a rapidly evolving technology landscape, even as profit margins are impacted by heavy expenditures.
  • The surge in investment in data centers by tech companies, including Alibaba, raises concerns about sustainability and the potential for a market bubble, as many firms are heavily borrowing to expand their AI capabilities amidst a backdrop of fluctuating demand and competitive pressures.
— via World Pulse Now AI Editorial System

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