Alibaba AI Cloud Margins Strained; R25 Vault Secures $50M at 15% APY
BABA•Alibaba’s cloud division faces mounting margin pressure after ramping AI data center investments, while Meta sustains profit growth despite larger spending. Ant Group–backed R25’s consumer credit vault launched with $35 million deposits, capped $50 million in pre-deposits within 48 hours, and offers up to 15% APY.
1. AI Cloud Investment Strains Alibaba Margins
Alibaba’s cloud division intensified AI data center investments this quarter, ramping capital outlays and narrowing operating margins as growth outpaced efficiency. Despite expanding infrastructure to support enterprise demand, higher depreciation and energy costs have pressured cloud unit profitability relative to peers.
2. Ant Group-Backed R25 Vault Launch and Details
The Ant Group–backed R25 protocol debuted the Axil Consumer Credit Vault on the Pharos blockchain, attracting $50 million in pre-deposits and launching with $35 million committed. The vault, audited by SlowMist, offers up to 15% APY on emerging-market small-ticket loans and positions itself against the $1.8 trillion private credit market contraction.
