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Alibaba announces $10.2 billion share sale for AI spending push
The company plans to sell 710 million shares at HK$112.70 each, and the stock fell about 10% immediately after the announcement.
Alibaba said it is raising about $10.2 billion to fund its artificial intelligence infrastructure by diluting its share count, according to Yahoo Finance. The plan calls for the sale of 710 million shares at HK$112.70 each.
The report said the stock dropped sharply after the announcement, falling about 10% immediately. Settlement and delivery are expected to be completed within the next couple of days.
Yahoo Finance also linked the fundraising to Alibaba's recent AI investment pace, noting the company reported a 75% drop in profit for the June quarter attributed to heavy AI spending. Earlier, Alibaba pledged RMB 380 billion for AI and cloud infrastructure over the following three years and had spent about $18 billion by the end of 2025.
The company has projected AI and cloud spending of roughly $25 billion to $28 billion in 2026, leaving an estimated $10 billion to $12 billion for 2027 and 2028, the report said. It also pointed to Alibaba's Qwen model results on an “Intelligence Index” benchmark, stating the Qwen 3.8 Max models scored 58 and were ranked behind some higher-scoring competitors.