Alibaba attributed the decline to "a net loss from investments in publicly-traded companies during the quarter, compared to a net gain in the same quarter last year, due to the mark-to-market changes." Investors are closely watching Alibaba's cloud computing division, which has struggled to reignite growth. Although the company had planned to spin off the cloud unit, it scrapped plans for an initial public offering last year. Alibaba's cloud computing unit generated revenue of 25.6 billion yuan, up just 3% year-on-year, the same growth rate seen in the previous quarter. The company aims to offset the impact of low-margin project-based contracts in its cloud division by focusing on artificial intelligence-related products and public cloud services for enterprise customers. During the March quarter, AI-related revenue experienced "triple-digit growth year-over-year."