# Alibaba says quarterly profit fell as AI spending increased

_Published Thursday, August 20, 2026 at 7:08 AM EDT · Products · Latest · Tier 2 — Notable_

Alibaba reported first-quarter revenue of about $40 billion, up 9% year over year, while net income fell about 75% to roughly $1.6 billion. The supplied summary attributes the profit decline to heavier AI spending and weak domestic retail consumption.

## Sources

- [Techmeme](https://www.techmeme.com/260820/p11#a260820p11)
- [Bloomberg Technology](https://www.bloomberg.com/news/videos/2026-08-20/bloomberg-tech-8-20-2026-video)

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Canonical: https://techandbusiness.org/newswire/RDlc9d6T_fINiXZM4fBH3d
Published: 2026-08-20T11:08:17.034Z
Story chronology: 2026-08-20T10:20:27.000Z
Retrieved: 2026-10-04T14:46:36.509Z
Publisher: Tech & Business (techandbusiness.org)