Alibaba to Raise $10.2 Billion in Stock Sale for AI Expansion
Chinese tech giant Alibaba is raising approximately $10.2 billion through a stock placement, with the proceeds entirely dedicated to expanding its artificial intelligence infrastructure. This offering ranks as the third-largest primary share sale of 2024 and marks the largest by a Hong Kong-listed company this year. Alphabet and Intel have also raised significant capital earlier in the year for similar AI-related investments. Despite Alibaba's strong revenue growth—particularly from cloud services, which saw external revenue rise 45% year-over-year—the company reported a sharp decline in net income (down 75%) due to heavy spending on infrastructure. The stock sale is part of an ongoing $50 billion investment plan over three years for AI and cloud development. The market reacted with caution, as Alibaba's Hong Kong-listed shares fell nearly 8% following the announcement while U.S.-listed shares remained relatively stable.
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Topics: AI investment Alibaba capital raising stock issuance