Alibaba and Tencent Lose Combined $66 Billion in Market Value as Investors Punish Unclear AI Monetization

Alibaba and Tencent lost a combined $66 billion in market capitalization as investors sold shares over concerns that neither company has articulated a clear path to monetizing their AI investments. The selloff came after both companies reported AI spending increases without corresponding revenue growth from AI products. Analysts noted that Chinese tech giants face a harder monetization path than US counterparts because enterprise AI adoption in China has been slower. The market reaction contrasts with the AI-driven rally that lifted both stocks earlier in the quarter.