Alibaba says its AI spending in e-commerce is already breaking even

Core Insights - Alibaba has committed to invest over $50 billion in artificial intelligence over the next three years, indicating a strong belief in AI's potential to generate returns despite market skepticism [1][2] - The company has already begun to see positive results from its AI investments, particularly in its e-commerce sector, with a reported 12% increase in returns on advertising spend [3][4] Investment Strategy - Alibaba's increased spending on AI and cloud infrastructure follows a previous pledge of 380 billion yuan ($53 billion) made in February, showcasing a strategic focus on technology investment [2] - The company views AI and consumption as "two major historic opportunities," prioritizing these investments over immediate profit margins [5] E-commerce Performance - Alibaba's e-commerce unit remains its largest revenue source, achieving a 10% year-on-year growth to approximately $19.53 billion in the quarter ending June 30 [4] - During the Singles Day shopping event, which is comparable to Black Friday, Alibaba anticipates a significant positive impact on gross merchandise volume due to AI integration [4]