Ant Group Reports 91% Profit Decline Amid AI Investment Surge

Ant Group, the fintech giant behind Alipay, has experienced a staggering 91% drop in its quarterly profit, falling to approximately 1.2 billion yuan (around $57 million) for the quarter ending September 30. This dramatic decline is attributed to the company's significant investments in artificial intelligence across various sectors, including healthcare and payment services.

The company's research and development spending surged to 23.45 billion yuan in 2024, a 10.7% increase from the previous year, primarily directed towards enhancing AI capabilities. This includes the AI-powered healthcare application AQ, which has gained over 100 million users since its launch in June 2025, and AI Pay features within Alipay, which have also surpassed the same user milestone.

Despite these advancements, Ant Group's financial outlook remains bleak, with profits projected to decline by approximately 79% in the following quarter. The company has been operating under stringent regulatory scrutiny since its halted IPO in late 2020, which adds further complexity to its financial situation.