ALI BABA QUIETLY CUT 80% OF THE REPURCHASE FUNDS TO AI

IN THE QUARTER OF JUNE 2026, NYSE:BABA SECRETLY REDUCED THE BUY-BACK SCALE BY 80 PER CENT TO INVEST IN AI INFRASTRUCTURE. THE COMPANY REPURCHASED 13.4 MILLION COMMON SHARES VALUED AT APPROXIMATELY $162 MILLION DURING THE QUARTER, COMPARED WITH 56 MILLION WORTH APPROXIMATELY $815 MILLION FOR THE SAME PERIOD LAST YEAR. AT THE SAME TIME, CAPITAL EXPENDITURE INCREASED BY 75 PER CENT OVER THE SAME PERIOD, TO RMB 67.678 BILLION. THE ADJUSTED EBITA LOSSES IN THE AI LABORATORY AND APPLICATION DEPARTMENT IN ARIBABA AMOUNTED TO RMB 13,861 MILLION, UP SIGNIFICANTLY FROM RMB 3,224 MILLION IN THE SAME PERIOD LAST YEAR. MANAGEMENT STATED THAT AI HARDWARE USUALLY ACHIEVED A BALANCE OF GAINS AND LOSSES OVER THREE YEARS AND THAT THE SUPPLY OF AI COMPUTING CAPACITY WITHIN THE INDUSTRY WAS EXPECTED TO REMAIN STRAINED UNTIL 2030。