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International Business Times
International Business Times
Business

Alibaba Shares Sink as AI Spending Surges, Sending Down Its Profit

Revenue rose 9% from a year earlier to 268.95 billion Chinese yuan, or roughly $39.7 billion, narrowly exceeding the 268.88 billion yuan expected by analysts. (Credit: Wang Zhao/AFP via Getty Images)

Alibaba shares sank on Thursday after the Chinese technology giant reported a steep decline in quarterly profit, highlighting the increasingly expensive price tag attached to its push to become a major player in artificial intelligence.

The company said net income plunged 75% in the June quarter as spending on AI infrastructure and computing capacity surged.

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