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CNBC
Alibaba cloud revenue rises 45% even as AI spending weighs on profit
Alibaba's cloud services saw a substantial revenue rise of 45% in the June quarter, largely attributed to the increasing demand for AI-driven products. Nevertheless, the company faced a sharp decline in net income, which dropped 75% to 10.4 billion yuan. This drastic fall in profitability is primarily linked to the heightened investments in cloud infrastructure necessary to support the impressive growth in services offered.
MonitorConfidence: MediumShort term horizon
Published 20 Aug 2026, 09:55 UTC1 min read
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Summary
TL;DR
- Alibaba's cloud revenue rose 45% in the June quarter.
- Net income decreased by 75% year-on-year.
- Increased demand for AI products supported growth.
- Cloud infrastructure spending contributed to profit decline.
- The company continues to focus on AI-driven services.
Interesting facts
- Despite the profit decline, the revenue growth indicates strong market demand for cloud services.
- AI investments may lead to long-term benefits despite short-term profit pressures.
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