Sou Hu Cai Jing·2025-09-03 04:48Core Insights - Alibaba is making significant investments in both AI and instant e-commerce, with a quarterly expenditure of 38 billion and a total investment of 100 billion in AI over the past year, indicating a high-stakes strategy to capture market share and future growth opportunities [1][3][4] Group 1: Financial Performance - The latest financial report reveals a projected loss of 22 billion in instant e-commerce for the quarter, highlighting the aggressive spending strategy to compete in the market [3] - Alibaba's capital expenditure for AI infrastructure has surged to 38.6 billion in a single quarter, reflecting a 2.2 times year-on-year increase [3] Group 2: Market Strategy - The company is employing a "burn money for growth" strategy, which has led to a 21% decline in profits for Chinese e-commerce groups, but has resulted in a 25% increase in monthly active buyers on the Taobao app [3] - Alibaba Cloud has seen a 26% growth this quarter, with AI-related revenue growing for eight consecutive quarters, now accounting for over 20% of external revenue [3] Group 3: Strategic Outlook - The dual focus on instant e-commerce and AI represents a rare case of a company betting heavily on two trillion-dollar markets simultaneously, with the potential for significant long-term rewards [4] - The CEO emphasizes a "start-up mentality" in pursuing these strategic investments, indicating a commitment to long-term growth despite short-term profit losses [4]