The Dark Side of AI Ambition: Alibaba's Profits Plunge 75% Alibaba's net income took a stunning hit of 75% in the June quarter, with shares plummeting by 5%.
This decline highlights the significant costs associated with developing and deploying artificial intelligence technologies. The company's capital expenditure skyrocketed by 75% to 67.
7 billion Chinese yuan ($10 billion), largely due to increased demand for computing power and hardware, as well as rising prices for chip components.