On August 20, 2026, Alibaba disclosed its quarterly results for the period ending June 30. In a first-time separate disclosure, the "AI Lab and Applications" segment generated quarterly revenue of 3.338 billion yuan, marking a 16% year-on-year increase, while its adjusted EBITA loss expanded to 13.861 billion yuan, compared to a loss of 3.224 billion yuan in the same period last year, representing a roughly 3.3-fold widening in losses.

Under Alibaba's newly restructured business framework, the "AI Lab and Applications" division consolidates the AI model lab, the Qwen 2C business unit, and Qwen Office, which were previously categorized under other operations. This integrated unit spans the full spectrum from foundational model research and development to consumer-facing AI applications and enterprise productivity tools.

Alibaba attributed the expanded losses primarily to increased investments in AI capabilities, as well as rising inference costs associated with the Qwen app.

Disclaimer: If any content above is erroneous or infringes upon the rights of your company, institution, organization, or individual, please contact us with an explanation, and we will cooperate fully with the unconditional removal of the content.