# Alibaba is undergoing a major AI investment cycle, causing a sharp drop in profits and free cash flow.

*business · news · 2026-04-13 · Seeking Alpha*

## Key points

- Alibaba's Cloud Intelligence Group achieved 36% year-over-year revenue growth, outpacing competitors.
- Alibaba is prioritizing AI infrastructure investment, causing a significant decline in profits and free cash flow.
- The company holds a strong $80.1 billion cash position, supporting ongoing AI and tech infrastructure pivots.
- Despite margin pressure and competition, Alibaba's core digital businesses remain resilient during the AI transition.

**Companies:** Alibaba
**Countries:** China

[Read the full story on Seeking Alpha](https://seekingalpha.com/article/4890166-alibaba-burning-profits-to-build-chinas-ai-stack-and-its-working)

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