Alibaba Posts First Operating Loss Since 2021 After AI Splurge

Alibaba Group Holding Ltd. posted its first operating loss since the depths of the Covid pandemic, underscoring the extent to which China’s e-commerce leader is spending on the AI initiatives it hopes will power its next phase of growth.

The company posted a loss from operations of 848 million yuan ($125 million) for the March quarter — its first deficit since the same three months of 2021. That’s while revenue during the period grew a less-than-projected 3%. Net income doubled, though much of that came from equity investment gains.

Alibaba’s disappointing performance followed a similarly lackluster report from Tencent Holdings ...