-listed company, which started out in e-commerce and online retail but is increasingly focused on AI technologies, said that its profit for April-June was at 10. But capital expenditures, including investments in AI infrastructure to meet customer demand, jumped 75% to 67. Alibaba attributed the significant increase in spendings to factors including “fluctuations” in procurement cycles, increase in CPU, or central processing unit, compute capacity in anticipation of growing customer adoption of AI “agents” and higher pricing of chip components. “As we continue to ramp up our supply, our AI and Cloud revenue growth will accelerate further in the coming quarters, alongside continued improvement in profitability,” said Alibaba CEO Eddie Wu in prepared remarks during an earnings conference. It has been making advances with its flagship Qwen AI and has launched “agentic” AI services for commercial customers.