Chinese technology giant Alibaba has announced plans to raise about $10.2 billion through a new share sale in Hong Kong as it seeks to expand its artificial intelligence business and strengthen its position in the global AI market.
The Hangzhou-based company said on Sunday that it would issue HK$80 billion worth of new shares, with all net proceeds dedicated to boosting its AI capabilities and infrastructure.
Alibaba said the equity placement would help extend its global AI leadership, with the funds supporting the development of its “full stack AI capabilities”, including the expansion and enhancement of AI infrastructure.
The fundraising comes as Alibaba intensifies its investment in AI, amid growing pressure from shareholders for the company to turn its heavy spending on the technology into stronger returns.
Alibaba reported nearly 269 billion yuan ($40 billion) in revenue for its latest quarter on Thursday, representing a nine per cent increase from the same period a year earlier. The company attributed part of the growth to rising demand associated with the global AI boom.
The company has also attracted international attention with its open-source Qwen AI models, which have been increasingly adopted by developers around the world.
The planned share sale underscores Alibaba’s determination to make AI a major driver of its future growth as competition in the global artificial intelligence market intensifies.
