Alibaba Profit Plunges as Quarterly AI Capital Expenditure Nears $10 Billion
· Technology · Bloomberg, Reuters, Economic Times
Alibaba reported a sharp decline in profit after increasing its quarterly capital expenditure to nearly $10 billion to fund heavy artificial intelligence investments. The spending surge reflects intense competition in the AI sector as major technology firms scale up infrastructure. Meanwhile, Meta has emerged as one of Microsoft's largest AI customers through undisclosed enterprise arrangements. In the defense sector, startup Castelion announced plans to scale up production of its hypersonic missile systems.
Why it matters
Massive capital outlays by tech giants like Alibaba signal intense financial pressure on corporate profits as the global artificial intelligence race accelerates.
Read the original report — Bloomberg
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