Will Rising Capex Pressure Hurt Alibaba's Margin and AI Strategy?

Key Takeaways BABA plans RMB 380B in AI and cloud capex over three years, pressuring margins and free cash flow.Alibaba sees 10% fiscal 2026 CMR growth, but cloud adjusted EBITA margins stay in the high single digits.BABA's AI products drive 20% of cloud revenues, yet utilization and quick commerce losses weigh on profits.Alibaba Group Holding's (BABA) ambitious infrastructure expansion threatens to further erode profitability as the company locks in RMB 380 billion in capital commitments over the next thre ...