Scale AI launches Claude as OpenAI raises $44.2 million

Key Takeaways

Alibaba Profit Drops 84% While AI and Cloud Grow

Alibaba reported a sharp 84% drop in core profit for the March quarter due to heavy investments in AI and cloud infrastructure. Despite the profit decline, the company's cloud division saw a 38% revenue increase to 41.6 billion yuan driven by strong AI demand. AI-related revenue achieved triple-digit growth for the eleventh consecutive quarter, reaching 9 billion yuan. The company also launched a new AI shopping assistant on Taobao to help users manage orders through conversation.

Alibaba AI Revenue Hits Triple-Digit Growth for 11th Quarter

Alibaba Group disclosed its first-ever quarterly revenue figures for AI-related products, showing growth for the eleventh straight quarter. The segment generated 8.97 billion yuan in revenue, contributing to a total company revenue of 243.4 billion yuan for the quarter. The cloud-computing unit continues to be a major success story with a 38% year-on-year revenue increase. CEO Eddie Wu stated that the company has moved its AI investments from the incubation phase to large-scale commercialization.

Alibaba Cloud Revenue Jumps 38% Amid Heavy Tech Spending

Alibaba reported a 38% surge in revenue for its Cloud Intelligence Group, which focuses on cloud computing and AI developments. However, the company recorded an operating loss of 848 million yuan for the quarter as it spends heavily on technology infrastructure. The Hangzhou-based firm has pledged at least 380 billion yuan in investments over three years for cloud and AI projects. Alibaba recently connected its Qwen AI app to the Taobao platform to allow users to shop using natural conversation.

Alibaba Cloud Revenue Rises 38% While Core Profit Falls

Revenue from Alibaba's Cloud Intelligence Group jumped 38% to 41.6 billion yuan in the first quarter of the year. This growth comes as the company faces an operating loss of 848 million yuan due to rising expenses from technological investments. Alibaba plans to invest at least 380 billion yuan over the next three years in cloud computing and AI infrastructure. The company also launched an agentic AI tool called Wukong and raised prices for some of its AI services.

Alibaba Profit Falls 84% as AI Investments Weigh on Earnings

Alibaba's core profitability dropped 84% year-on-year in the March quarter because of heavy spending on AI models and cloud infrastructure. The company's adjusted earnings before interest, taxes, and amortization fell to 5.1 billion Chinese yuan. While the China e-commerce division saw a 40% drop in adjusted EBITA, its cloud division posted a 38% revenue rise. CEO Eddie Wu believes the returns on these investments will be clear over the next three to five years.

Nokia Partners with Anduril to Bring AI to Defense Sector

Nokia is partnering with Anduril Industries to bring its AI-powered networking technology to the defense market. The companies are developing a system to counter unmanned aerial systems for the Belgian military using 5G technology. Nokia's AI and cloud-related net sales surged 49% in the first quarter of 2026, driven by demand for optical networking products. The collaboration helps Nokia expand its mission-critical enterprise and defense segment with secure, AI-enabled private networks.

Nokia Stock Rises as Company Partners with Anduril on AI

Nokia has partnered with Anduril Industries to integrate AI networking capabilities into defense operations. The Finnish telecommunications company is using its expertise to build low-latency communication backbones for military use. Nokia's AI and cloud sales increased by 49% in the first quarter of 2026, adding 1 billion euros in new orders. The company raised its forecast for AI and cloud growth to a 27% annual rate through 2028.

Chipmaker Stock Surges Past Palantir and Nvidia on AI Growth

A specific chipmaker has seen its stock rise over 50% in the past year due to strong adoption of artificial intelligence. The company reported a 20% increase in revenue and expanded profit margins to 25% in the most recent quarter. AI-powered products are a key driver of this growth, though the company faces challenges like intense competition and a high stock price. Analysts believe the firm is well-positioned to benefit from the growing demand for AI solutions.

Chipmaker Stock Outperforms Palantir and Nvidia Thanks to AI

A chipmaker is experiencing rapid growth with its stock rising over 50% in the last year. The company's revenue grew by 20% year-over-year while profit margins expanded to 25%. This surge is largely driven by the increasing adoption of artificial intelligence in its products. Despite challenges like competition and a high valuation, the company's growth prospects remain strong as AI demand continues to rise.

SoundHound AI Stock Gains as Revenue Soars and Acquisition Nears

SoundHound AI reported a 52% spike in revenue for its most recent quarter, reaching $44.2 million. The company is acquiring LivePerson to expand its presence in the customer service space and gain access to a large customer base. The deal is expected to close in the second half of 2026 and will help SoundHound become debt-free. SoundHound also launched a new platform called OASYS to create fleets of AI agents quickly.

Palo Alto Networks Expands AI Defense Partnership Ecosystem

Palo Alto Networks announced a major expansion of its ecosystem for autonomous defense by welcoming new strategic partners. The company added firms like Cognizant, HCLTech, and Wipro to its existing alliance which includes Accenture and IBM. This initiative aims to provide machine-speed security using Frontier AI to defend against autonomous cyber threats. The collaboration leverages expert knowledge to fast-track the discovery and remediation of security exposures.

Generative AI Transforms Strategy and Workforce at TBLA

TBLA is undergoing a strategic transformation driven by generative AI to reshape its products and workforce. The company is focusing on cultural change and hands-on leadership to integrate new technologies like Realize+ and Claude. This shift aims to leverage unique data and supply chains to drive growth and innovation. The evolving workforce needs are being addressed through these new AI-powered strategies.

Tech Leaders Join Trump for China Visit Amid AI Trial

Tech executives including Tim Cook, Elon Musk, and Robin Li are joining President Donald Trump for a trip to China. The visit aims to strengthen ties between the two nations and promote trade and investment. Meanwhile, the trial of OpenAI continues in a US court regarding allegations of developing AI technology for malicious purposes. The tech sector recently helped US stocks reach all-time highs driven by the AI boom.

Chinese PCB Maker WUS Powers NVIDIA AI Servers

WUS Printed Circuit is the only global supplier of the 78-layer backplane for NVIDIA's AI servers. The company reported a 62.9% profit increase in the first quarter of 2026 due to strong order growth. Its success is driven by the rising demand for AI infrastructure and its innovative PCB design capabilities. WUS is well-positioned to remain a key player in the supply chain for advanced AI systems.

Former Alibaba Researcher Launches New AI Lab with $2B Goal

Junyang Lin, a former lead researcher at Alibaba, has started a new AI lab focused on natural language processing and computer vision. He is seeking to raise hundreds of millions of dollars to reach a valuation of around $2 billion. The lab aims to develop new AI models that can learn and adapt quickly for various industries. Lin's new venture is expected to create hundreds of jobs and potentially rival major tech companies.

GrazeMate Uses Drones to Herd Cattle with Three Clicks

GrazeMate has developed autonomous drone software that herds cattle across large ranches using just three phone taps. The technology uses proprietary reinforcement learning trained on expert stockmanship to respond to animal behavior. Founded by a 19-year-old Australian farmer, the company has raised $1.2 million and signed contracts for 1.7 million acres. The startup is now expanding its operations into California and Texas.

Sources

• Alibaba's core profit plunges 84% even as AI and cloud growth accelerate
• Alibaba AI revenue sees triple-digit-gain streak hit 11 quarters amid reshuffle
• China’s Alibaba reports 38% jump in AI and cloud revenue as it races to grow
• Alibaba's AI and cloud revenue jump 38%
• Alibaba core profit plunges 84% on AI, e-commerce investments
• This $13 Nvidia-Backed Artificial Intelligence (AI) Stock Just Partnered with Anduril. Here's What Investors Need to Know.
• This $13 Nvidia-Backed Artificial Intelligence (AI) Stock Just Partnered with Anduril. Here's What Investors Need to Know.
• Meet the AI stock crushing Palantir, Nvidia, and Alphabet right now
• Meet the AI Stock Crushing Palantir, Nvidia, and Alphabet Right Now
• Is SoundHound AI Stock a Buy on the Dip as Revenue Continues to Soar?
• Beyond the Frontier — Expanding the Ecosystem for Autonomous Defense
• TBLA: Generative AI is reshaping strategy, products, and workforce, driving growth and innovation
• Tech stocks today: Cook, Musk, and Huang join Trump for China trip, OpenAI trial continues
• The Little-Known Chinese Company Powering NVIDIA's Most Advanced AI Servers
• Former Alibaba Star Researcher Starts New AI Lab, Seeks $2 Billion Valuation
• Claude's Corner: GrazeMate — Three Clicks to Move a Thousand Cows