Alibaba’s AI Investments Trigger First Operating Loss Since 2021

The company swung to an operating loss as heavy spending on AI and cloud computing weighed on profitability, despite revenue growth.

People commute past Chinese e-commerce giant Alibaba's headquarters in Hangzhou in China's eastern Zhejiang province on May 26, 2022. STR/AFP via Getty Images

Alibaba Group has reported its first operating loss since 2021 after ramping up investment in artificial intelligence.

The Chinese e-commerce and technology company posted an operating loss of 848 million yuan ($123 million) for the quarter ending March 31, according to its official earnings statement on May 13.