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Jack Ma buys $76.5 million of Alibaba shares after AI placement
The founder purchase follows Alibaba’s HK$80 billion share placement aimed at expanding its full-stack AI capabilities, after which investors worried about dilution and heavy spending.
Alibaba Group Holding said its AI push has drawn fresh insider buying after founder Jack Ma reportedly purchased more than HK$600 million, or about $76.5 million, in Alibaba’s Hong Kong-listed shares in recent days, according to Yahoo Finance.
The buying comes alongside purchases by Chairman Joe Tsai and CEO Eddie Wu, who have together bought at least $25 million, as the company moves to finance an HK$80 billion ($10.2 billion) share placement announced earlier.
Yahoo Finance notes that the placement sparked a sell-off amid investor concerns about dilution, elevated spending, and whether Alibaba can generate sufficient returns from its AI investments.
The report says the company now faces the task of translating its large AI spending into sustainable earnings growth and long-term shareholder value as it navigates heightened volatility.