Chinese technology giant Alibaba has raised HK$80 billion (approximately US$10.2 billion) through a landmark share placement, with the proceeds earmarked entirely for expanding its artificial intelligence (AI) capabilities and cloud infrastructure. The fundraising marks the largest primary follow-on share offering ever completed by a Hong Kong-listed company and underscores Alibaba’s determination to strengthen its position in the increasingly competitive global AI market.
The company said the capital will be invested across its “full-stack” AI ecosystem, including advanced computing infrastructure, AI model development, and cloud services. The move comes as technology firms worldwide continue to pour billions of dollars into AI to meet surging demand for generative AI applications and enterprise cloud solutions.
Alibaba issued 710 million new shares at HK$112.70 per share, representing a discount to its previous closing price. While the announcement prompted an initial decline in the company’s share price amid concerns about shareholder dilution, the offering reportedly attracted strong institutional demand, highlighting investor confidence in Alibaba’s long-term AI strategy.
The fundraising follows Alibaba’s recent quarterly earnings report, which revealed a 75% decline in net profit as the company sharply increased spending on AI infrastructure. Despite the earnings hit, revenue continued to grow, driven by robust demand for Alibaba Cloud’s AI-related services, with cloud and AI revenues posting strong year-on-year gains.
Chief Executive Eddie Wu has repeatedly emphasized that AI represents the company’s top strategic priority. Alibaba has already committed to investing 380 billion yuan (around US$56 billion) over three years to expand its AI and cloud computing infrastructure, with the latest fundraising expected to accelerate that plan.
Industry analysts say the latest capital raise reflects the intensifying global AI race, where companies are investing heavily in data centres, semiconductor technologies, and large language models. Although the aggressive spending is weighing on short-term profitability, many investors view it as a necessary step to secure long-term growth and maintain competitiveness against rivals in China and internationally.
Alibaba’s latest investment reinforces the broader trend of major technology companies prioritising AI development as the next engine of innovation and economic growth, signalling that the global competition to dominate artificial intelligence is entering an even more capital-intensive phase.
