Alibaba profit plunges 75% as AI spending increases

Alibaba has posted a 75 per cent drop in quarterly profits as it ramped up spending on artificial intelligence infrastructure.
The group recorded a nine per cent rise in revenue to 268.95bn yuan (£29.6bn) for the April-to-June quarter, narrowly ahead of analyst expectations of 268.88bn yuan.
However, earnings were hit by the company’s accelerating investment in AI, with capital expenditure jumping 75 per cent to 67.68bn yuan during the period.
Alibaba has committed 380bn yuan to AI i