GATE86The China Gateway
China's Big Tech Profits Collapse as AI Spending Race Accelerates
Industry17 MAY 2026Source: SCMP China Tech, SCMP China Tech, 36kr

China's Big Tech Profits Collapse as AI Spending Race Accelerates

Alibaba's Q4 adjusted EBITA fell 84% year-on-year while Tencent missed Q1 revenue estimates — both companies simultaneously pledging to accelerate AI capital expenditure beyond already-elevated targets, crystallizing a structural tension that is now visibly bleeding into equity valuations.

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