Brazil launches AI supercomputer push while balancing US and Chinese tech

Alibaba, the Chinese tech giant, reported a surge in revenue for the quarter ended June 30, driven by the global artificial intelligence (AI) frenzy. The company's revenue in the period reached nearly 269 billion yuan (US$40 billion), up 9% year-on-year, according to results posted to the Hong Kong Stock Exchange. However, the net profit declined sharply by 76% year-on-year to 10.5 billion yuan, reflecting the impact of substantial strategic investments and economic pressures in its home market.

CEO Eddie Wu highlighted a "strong quarter," attributing it to the successful commercialization of the company's full-stack AI capabilities. Alibaba Cloud, the firm's cloud computing subsidiary, experienced external revenue growth of 45%, with AI-related product revenue growing at triple-digit rates for the twelfth consecutive quarter. The company's open-source Qwen AI models have gained considerable popularity among global developers.

Alibaba is renowned for its e-commerce platforms, including Taobao, China's largest online shopping site. The company has been heavily investing in AI, with CEO Eddie Wu emphasizing the significant push into AI technologies. Despite the revenue growth, the net profit dip is attributed to the large strategic investments made by the company and the challenging economic conditions in its home market.

The company has faced regulatory pressure in recent years due to a persistent decline in consumer activity within China, intensifying a price war in the e-commerce sector. In June, the US Department of Defense classified Alibaba as a military-linked firm, a claim the company challenged by filing a lawsuit in a California federal court. Additionally, Alibaba faced regulatory scrutiny in China as part of a broader crackdown on domestic tech firms, which aimed to prevent the top companies from becoming too powerful.

Alibaba's charismatic co-founder, Jack Ma, maintained a low profile during the regulatory campaign, but made a surprise appearance in February 2025 during a meeting with President Xi Jinping and other business leaders. This unexpected development hinted at a more amicable relationship with Beijing, causing Alibaba's stock price to soar. Although Ma is no longer an executive at Alibaba, he is believed to still hold a significant shareholding in the company.