Alibaba's AI Arm Surges 34% Though Big Spending Slashes Profit

Alibaba's AI Arm Surges 34% Though Big Spending Slashes Profit

Alibaba's Profit Drops by Half as AI Spending and Delivery Competition Rise

Chinese e-commerce titan Alibaba Group experienced a 50% decline in net profit during the second quarter of its fiscal year, primarily due to substantial investments in artificial intelligence and ongoing competition in the food delivery market. For the three months ending September 30, net profit dropped 53% to CNY20.6 billion (USD2.9 billion) compared to the same period last year, according to the company’s recent earnings report. Revenue incr…