{"id":652689,"date":"2026-08-23T19:23:18","date_gmt":"2026-08-23T19:23:18","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/652689\/"},"modified":"2026-08-23T19:23:18","modified_gmt":"2026-08-23T19:23:18","slug":"alibaba-launches-record-10-billion-share-sale-to-enter-the-ai-race","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/652689\/","title":{"rendered":"Alibaba Launches Record $10 Billion Share Sale to Enter the AI Race"},"content":{"rendered":"

\"Alibaba<\/a> Alibaba share sale to fund AI expansion. Photo by BeInCrypto <\/p>\n

Alibaba Group Holding (BABA) seeks to raise about $10 billion in a share sale.<\/strong> <\/p>\n

The Chinese e-commerce and cloud computing giant said it will channel 100% of net proceeds into full-stack AI capabilities. <\/p>\n

Alibaba Wants to Enter the AI Race <\/p>\n

Alibaba is offering 710 million ordinary shares at HK$112.70 each, a 3.6% discount to Friday’s close, according to Bloomberg. The deal would mark the largest-ever primary follow-on offering by a Hong Kong-listed company. <\/p>\n

Globally, the deal ranks as the third-largest primary follow-on this year. Only Alphabet’s $80 billion raise in June and Intel’s $15 billion sale in August were bigger. <\/p>\n

The full-stack category covers chips, infrastructure, and the development and deployment of AI models. Alibaba will face a 90-day lockup. <\/p>\n

Reuters, citing two people familiar with the deal, reported that the offering has drawn strong investor interest, including from sovereign wealth funds. <\/p>\n

According to the sources, demand exceeded the initial sale size, prompting Alibaba to increase the offering. Morgan Stanley, HSBC, UBS, and CICC are acting as joint bookrunners. <\/p>\n

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AI Spending Squeezes Profit and Cash Flow <\/p>\n

The raise arrives as Alibaba’s AI buildout impacts its finances. Quarterly capital spending has climbed to nearly 10 billion. <\/p>\n

Meanwhile, the June-quarter net profit plunged 75% to 10.5 billion yuan (1.6 billion). Free cash outflow reached $6.6 billion. <\/p>\n

Alibaba has already spent nearly half of its three-year capex plan. However, it expects the payback period for AI investments to shorten from 3 years to 2.5 years, citing surging demand. <\/p>\n

Chief Executive Eddie Wu has also been pruning non-core assets to fund the pivot. Alibaba recently sold its gaming arm Lingxi Games to Trustar Capital in a deal reportedly worth at least $1.5 billion. <\/p>\n

Meanwhile, the company’s flagship Qwen family became the world’s most popular model lineup this year, per Bloomberg. Whether $10 billion in fresh capital can maintain that lead over US rivals is now the question investors are likely pricing in. <\/p>\n

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