HONG KONG / RankWire.AI / – Alibaba Group has announced the pricing of an HK$80 billion share issuance aimed at financing its artificial intelligence expansion and enhancing its AI infrastructure. The Chinese tech giant will distribute 710 million new ordinary shares at HK$112.70 per share. Based on current exchange rates, this deal is valued at approximately US$10.2 billion. Alibaba anticipates completing the transaction by Aug. 26, pending standard closing conditions.
The company clarified that all net proceeds will be allocated solely to expanding its comprehensive AI technology stack. These funds will support broad upgrades and growth initiatives for its artificial intelligence infrastructure, which encompasses cloud computing, models, chips, and software applications. Notably, its Qwen model series and Alibaba Cloud services are central components of this technological ecosystem.
Targeting international investors outside the U.S., Alibaba’s offshore placement is priced at HK$112.70, representing an 8.4% discount compared to Friday’s HK$123 closing price. Following the announcement, Hong Kong-listed shares declined as much as 10% to HK$110.10 in early Monday trading. The company also maintains a listing in New York via American depositary shares under the ticker BABA.
Alibaba’s AI Infrastructure Investment Accelerates Post-Fundraising
The fundraising coincides with a notable rise in Alibaba’s capital expenditure on computing infrastructure, which reached RMB67.68 billion, or roughly US$10 billion, for the quarter ending June 30. This marks a 75% jump from RMB38.68 billion a year earlier. The company attributes this surge to ongoing investments in AI infrastructure, increased demand for computing power, and rising costs of chip components.
During the same period, Alibaba reported quarterly revenue of RMB268.95 billion, approximately US$39.6 billion, reflecting a 9% increase year-over-year. Revenue from AI Cloud and Compute Services alone hit RMB48.44 billion, about US$7.1 billion, with a 45% growth compared to the previous year. Additionally, revenue generated from AI-related products reached RMB12.38 billion, registering triple-digit growth for the twelfth consecutive quarter.
New Funding Reinforces Alibaba’s AI Strategy Commitments
This latest capital raise continues to build on Alibaba’s previous investment plan announced in February 2025, which pledged at least RMB380 billion for AI and cloud infrastructure over three years. That commitment significantly exceeds the total expenditures on these sectors over the past decade. Since then, Alibaba has maintained a focus on expanding computing capacity and advancing its cloud platform, AI models, as well as developing proprietary semiconductor technology.
This increased investment has coincided with weaker quarterly profit figures and accelerated growth in cloud revenues. In the June quarter, Alibaba reported a net income of RMB10.44 billion, down 75% from the same period last year. Meanwhile, free cash flow showed a net outflow of RMB44.67 billion, largely due to higher spending on cloud infrastructure. The HK$80 billion share placement provides Alibaba with additional capital specifically earmarked for its comprehensive AI capabilities and infrastructure expansion.