Alibaba’s high-stakes gamble: shifting from selling goods to selling tokens, moving from the cutthroat burn-and-spend model of food delivery to focusing on profitability, with its AI strategy now resembling ByteDance’s plan. First, the numbers: In Q3 of fiscal year 2026, the group’s total revenue was RMB 284.8 billion, a 2% year-over-year increase. Operating profit, however, plummeted 74% year-over-year to just RMB 10.6 billion. Where did the profits go? Two major drains: food delivery and AI—with food delivery being the largest. The business is now undergoing a full restructuring, shifting focus to stop the bleeding and generate cash flow, with heavy bets placed on monetizing Alibaba Cloud. https://t.co/QU5R2JI2He
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