Alibaba plans $10.2bn share sale for AI expansion

Alibaba plans to issue HK$80 billion ($10.2 billion) in new shares in Hong Kong to fund global artificial intelligence expansion, the Chinese technology company said Sunday.

The Hangzhou-based company said all net proceeds from the equity placement would be used to invest in its "full stack AI capabilities", including expanded and improved AI infrastructure. It said the placement was intended to extend its global AI leadership.

The plan follows Alibaba's quarterly results on Thursday, when it reported nearly 269 billion yuan ($40 billion) in revenue, up 9% from a year earlier, as demand tied to artificial intelligence boosted its products. Alibaba is known for its open-source Qwen AI models, which have gained users among developers worldwide.

The company has been investing tens of billions of dollars in AI as investors watch how it will turn that spending into revenue.