Alibaba AI Now Drives 35% of Cloud Revenue - Alibaba Gr Hldgs (NYSE:BABA)

Alibaba’s AI cloud growth surge drives earnings despite soaring tech spending

Alibaba's AI Cloud division grew 45% YoY; AI product revenue hit 12.4B yuan, but capital expenditure surged 75% to 67.7B yuan. Hyperscalers are sacrificing profitability (EBITDA down 30% YoY) to lock in AI infrastructure scale—a capital-intensive race smaller players cannot afford to join.