Alibaba raises $10 billion in Hong Kong share sale to fund AI infrastructure
Alibaba Group raised HK$80 billion ($10.2 billion) through a follow-on share offering in Hong Kong, marking the city's largest such transaction since 2021. The company sold 710 million shares at HK$112.70 each—3.6% below its U.S.-listed closing price—and will use all proceeds to invest in AI infrastructure as part of a broader strategy that includes over $56 billion in planned spending on chips, data centers, and large-language models. The offering attracted strong institutional demand but was followed by an 8.5% drop in Alibaba's stock—the steepest decline since early 2025—despite top executives purchasing shares to signal confidence. The capital raise is part of a broader strategy that includes selling non-core assets, such as its gaming unit and stakes in retail chains. Alibaba’s cloud division reported strong growth with AI-related revenue rising by triple digits for 11 consecutive quarters.
Topics: ai investment stock_issuance