Alibaba’s Profit Slumps but AI Business Shines

Alibaba Group’s 9988 2.14%increase; green up pointing triangle profit halved in its fiscal second quarter amid fierce competition in the food-delivery sector, but revenue growth was steady as its artificial-intelligence business gained momentum, with the consumer AI space the latest target in its sights.

The Hangzhou, China-based company said Tuesday that its net profit fell 53% to 20.99 billion yuan, equivalent to $2.96 billion. Adjusted net profit declined by an even sharper 72% to 10.35 billion yuan, a tad below market expectations.