Jack Ma-Backed Ant’s Profit Fell 91% on AI Spending, Fair Value

Ant Group reported a 91% quarterly profit drop, driven by aggressive investments in AI and healthcare as the Chinese fintech giant pivots toward high-growth sectors amid intensifying competition. The steep decline also stemmed from a sharp reduction in the fair value of its equity investments, reflecting broader market volatility and revaluations in its portfolio holdings. Founded by Jack Ma, the digital payments leader is accelerating AI spending to counter rivals like Tencent and emerging tech startups, despite short-term financial strain. Healthcare expansion marks a strategic shift beyond fintech, targeting China’s booming digital health market with AI-driven diagnostics and payment-integrated medical services. Analysts note the trade-off: heavy R&D costs now for potential long-term dominance in AI and healthcare, though investors face near-term profitability pressures from the aggressive pivot.