Alibaba plans $10bn share sale to fund AI expansion

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Chinese tech giant Alibaba said on Sunday that it plans to issue HK$80 billion ($10.2 billion) in new shares in Hong Kong to fund its global artificial intelligence ambitions.

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The Hangzhou-based firm has been ploughing tens of billions of dollars into AI, with its shareholders eager to see how it will monetise the huge investments.

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“The Equity Placement is being undertaken to extend the Company’s global AI leadership,” Alibaba said in a statement.

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The company intends to use all of the net proceeds to invest in its “full stack AI capabilities, including to expand and enhance its AI infrastructure”, it said.

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Alibaba on Thursday announced nearly 269 billion yuan ($40 billion) in revenue in its most recent quarter — a nine per cent year-on-year increase -– boosted by the global artificial intelligence frenzy driving demand for its products.

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The firm is known for its open-source “Qwen” AI models, which have gained popularity with developers worldwide.

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AFP

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