Alibaba Posts First Operating Loss in Four Years as AI and Delivery Costs Rise

Alibaba posted an operating loss for the first time in four years, hankyung.com reported. The loss was attributed to the combined burden of increased investment in artificial intelligence and fiercer competition in the delivery market. Alibaba has been expanding AI spending to strengthen its core business competitiveness, but that investment has become a short-term cost factor. At the same time, tougher delivery-market rivalry has added pressure on profitability. Investors are watching how Alibaba balances AI investment, delivery competition, cost control and its growth strategy going forward. Source: hankyung.com