Alibaba just posted a quarter that perfectly captures the tension at the heart of Big Tech right now: revenue up, profits down, and a massive AI bill sitting on the table. 5B) for the quarter ending June 30, a 75% collapse compared to the same period last year. Advertisement The AI spending paradox Alibaba has been plowing capital into artificial intelligence infrastructure, with both the March and December periods showing similar profit compression. Alibaba pointed to reduced income from operations, fewer gains from investment disposals, and mark-to-market adjustments on equity investments as contributing factors. The earnings release dropped on August 20, following a board review completed the day before.