Alibaba's core profit plunges 84% even as AI and cloud growth accelerate (www.cnbc.com)

Alibaba reported a staggering 84% drop in its core profitability for the March quarter, attributed to substantial investments in technology and quick commerce initiatives. The company's adjusted EBITA fell to 5.1 billion yuan ($750.9 million), despite a notable uptick in cloud computing revenue, which surged 38% year-on-year, driven primarily by rising demand for AI solutions. This inconsistency reflects the tech giant's ongoing struggle to balance immediate profitability with long-term strategic investments, particularly in the competitive landscape of quick commerce and semiconductor development for AI. Significantly, Alibaba's cloud segment showcased robust growth, with AI-related product revenues experiencing triple-digit increases for the eleventh consecutive quarter, amounting to 9 billion yuan. Alibaba's continued emphasis on AI has positioned it as a leader in China's tech space, with its Qwen AI models ranking among the best globally. Moreover, the company announced plans to launch an AI shopping assistant powered by Qwen on Taobao, signifying an ambitious move to integrate AI deeper into its e-commerce operations and further capitalize on the growing consumer demand for smart shopping solutions.