- Alibaba's profit plunged about 75% and it logged a >$6.6B free-cash outflow as weak consumer demand collided with soaring AI and cloud costs.
- The company has aggressively pivoted to AI — its Qwen models became globally prominent and it even released open weights for its largest model, signaling a push to lead AI development.
- CEO Eddie Wu is prioritizing AI growth over near‑term profits, aiming to dramatically scale cloud/AI revenue, but investors are uneasy (shares fell ~4%) amid intense competition from Tencent and ByteDance.
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