Alibaba’s AI cloud growth surge drives earnings despite soaring tech spending

South China Morning Post - Aug 20, 2026

Alibaba Group Holding on Thursday reported revenue growth of 45 per cent for its cloud and artificial intelligence division in the June quarter, driving adjusted profit to a better-than-expected 27.3 billion yuan (US$4 billion). The company assured investors that its soaring spending on AI infrastructure would pay off, with executives noting in an earnings call that its AI computing investments would break even within three years – or possibly two as gross margins rose. AI Cloud and Compute...

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China has set up a new state-owned enterprise dedicated to managing the country’s massive data resources, a significant move designed to turbocharge the nation’s artificial intelligence industry and bolster its digital economy. The National Data Group Co – based in China’s “city of the future”, Xiongan New Area in northern Hebei province – is tasked with “developing and utilising data resources, unlocking the value of data elements, serving AI development and fostering a data industry...

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Alibaba’s RISC-V IP powers over 6 billion shipped chips as tech giant targets AI, autos

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CXMT shares fall 7.8% despite blockbuster earnings figures

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Chinese memory chip giant ChangXin Memory Technologies (CXMT) saw its shares fall more than 8 per cent in early Monday trading, despite forecasts of strong profits and plans for a share buy-back amid a global sector-wide market rout. CXMT shares dropped 7.8 per cent on Monday to close at 41.52 yuan. The company’s stock surged to a peak of 61.8 yuan in August – up as much as 614 per cent from its initial public offering price of 8.66 yuan in July – before paring back gains. The market reaction...

CXMT shares fall 7.8% despite blockbuster earnings figures

CXMT shares fall 7.8% despite blockbuster earnings figures

Chinese memory chip giant ChangXin Memory Technologies (CXMT) saw its shares fall more than 8 per cent in early Monday trading, despite forecasts of strong profits and plans for a share buy-back amid a global sector-wide market rout. CXMT shares dropped 7.8 per cent on Monday to close at 41.52 yuan. The company’s stock surged to a peak of 61.8 yuan in August – up as much as 614 per cent from its initial public offering price of 8.66 yuan in July – before paring back gains. The market reaction...

The AI promise was automation. The reality? Managing digital workers

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The AI promise was automation. The reality? Managing digital workers

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China’s proposed AI tech export bans may create short-term costs, long-term gains: analysts

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China’s proposed AI tech export bans may create short-term costs, long-term gains: analysts

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Alibaba to embed AI throughout Taobao, Tmall merchant operations in 2027: executive

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Alibaba to embed AI throughout Taobao, Tmall merchant operations in 2027: executive

Alibaba to embed AI throughout Taobao, Tmall merchant operations in 2027: executive

Alibaba Group Holding’s two major domestic online marketplaces, Taobao and Tmall, plan to greatly expand the use of artificial intelligence across merchants’ operations next year, a senior executive said, as the e-commerce giant doubles down on the technology to drive growth amid a challenging consumer landscape. “Starting next year, AI will comprehensively enter the internal enterprise workflows of merchants,” Liu Bo, president of Tmall, said at the company’s Singles’ Day media briefing on...

ASML eyes hybrid bonding, report finds, as Chinese firms adopt chip packaging technique

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Dutch semiconductor equipment giant ASML is expanding into next-generation hybrid bonding, a technique that creates dense electrical connections by directly joining chips or silicon wafers, according to a new report. Major Chinese companies are also adopting the technology to improve chip performance. ASML submitted 27 patent families related to hybrid bonding tools between December 2022 and November 2024, according to a report published by semiconductor and AI supply chain research firm...

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