BABA redirects $653 million from repurchases to AI infrastructure as losses in AI Labs widen to $1.9 billion.
Alibaba reduced its share buybacks by 80% year over year in the June quarter, repurchasing 1.7 million ADSs for $162 million compared to 7 million ADSs for $815 million a year earlier. The company retained $19.3 billion in buyback authorization as of June 30, 2025.
Capital expenditures surged 75% to $9.3 billion, driven by AI infrastructure investments. Free cash flow turned more negative, reaching $6.2 billion from $2.6 billion a year earlier. AI Labs posted a $1.9 billion adjusted EBITA loss, up from $445 million, while cloud revenue grew 45%.
The shift reflects CEO Eddie Wu’s strategy to prioritize AI as the company’s primary growth driver, despite widening losses in the segment.