# Alibaba says quarterly profit fell as AI spending increased

_Thursday, August 20, 2026 at 6:20 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)

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Retrieved: 2026-08-20T12:05:39.505Z
Publisher: Tech & Business (techandbusiness.org)