{"slug": "alibaba-prices-hk-80-billion-new-share-placement-to-fund-ai-expansion", "title": "Alibaba prices HK$80 billion new share placement to fund AI expansion", "summary": "Alibaba Group has priced an HK$80 billion (US$10.3 billion) placement of 710 million new ordinary shares at HK$112.70 each in Hong Kong, with net proceeds of approximately HK$79.7 billion earmarked for full-stack AI development and computing infrastructure expansion. The transaction, expected to close on August 26, comes as Alibaba accelerates AI spending, with AI Cloud revenue up 45% year-on-year to RMB48.4 billion in the June quarter and capital expenditure rising 75% to nearly US$10 billion.", "body_md": "# Alibaba prices HK$80 billion new share placement to fund AI expansion\n\n[Chinese](https://qazinform.com/tag/china_t5478) technology group Alibaba has priced an HK$80 billion (US$10.3 billion) placement of new shares in Hong Kong, pledging all net proceeds to [artificial intelligence](https://qazinform.com/tag/ai) development and infrastructure, [Qazinform](https://qazinform.com/) News Agency correspondent reports.\n\nAlibaba Group said it would issue 710 million ordinary shares at HK$112.70 each to professional, institutional and other investors outside the [United States](https://qazinform.com/tag/usa). The transaction is expected to close on August 26, subject to customary conditions.\n\nThe placement is expected to generate gross proceeds of HK$80 billion and net proceeds of approximately HK$79.7 billion after commissions and other expenses. The company said the entire amount would be invested in its full-stack [AI](https://qazinform.com/tag/ai) capabilities, including the expansion and upgrading of computing infrastructure.\n\nThe new shares represent approximately 3.7% of Alibaba’s currently issued share capital and 3.57% of the enlarged total following the transaction, according to a filing with the Hong Kong Stock Exchange.\n\nThe placement price is 3.6% below the referenced share price and 9% below the average closing price of Alibaba’s American depositary shares over the five trading days through August 21, adjusted to an ordinary-share basis.\n\nThe fundraising comes as Alibaba accelerates spending across the [AI](https://qazinform.com/tag/ai) technology chain, from computing infrastructure and cloud services to its Qwen family of models and consumer and enterprise applications.\n\nIn its latest quarterly results, the company said revenue from [AI](https://qazinform.com/tag/ai) Cloud and Compute Services rose 45% year-on-year to RMB48.4 billion (US$7.1 billion) in the three months ending June 30. Capital expenditure increased 75% to nearly US$10 billion, while free cash flow recorded an outflow of RMB44.7 billion, largely due to higher spending on cloud infrastructure.\n\nIn February 2025, Alibaba announced plans to invest at least RMB380 billion (US$53 billion) in [AI](https://qazinform.com/tag/ai) and cloud infrastructure over three years - more than it had spent in the two areas during the previous decade.\n\nEarlier, [Qazinform reported](https://qazinform.com/news/how-chinas-data-strategy-could-reshape-the-ai-race-fdf9c4) on how [China](https://qazinform.com/tag/china_t5478)’s efforts to treat data as an economic asset could influence competition in artificial intelligence, particularly in industrial and embodied [AI](https://qazinform.com/tag/ai).", "url": "https://wpnews.pro/news/alibaba-prices-hk-80-billion-new-share-placement-to-fund-ai-expansion", "canonical_source": "https://qazinform.com/news/alibaba-prices-hk80-billion-new-share-placement-to-fund-ai-expansion-aee0b5", "published_at": "2026-08-25 05:20:00+00:00", "updated_at": "2026-08-25 05:43:10.582787+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure", "ai-policy"], "entities": ["Alibaba Group", "Hong Kong Stock Exchange", "Qazinform News Agency"], "alternates": {"html": "https://wpnews.pro/news/alibaba-prices-hk-80-billion-new-share-placement-to-fund-ai-expansion", "markdown": "https://wpnews.pro/news/alibaba-prices-hk-80-billion-new-share-placement-to-fund-ai-expansion.md", "text": "https://wpnews.pro/news/alibaba-prices-hk-80-billion-new-share-placement-to-fund-ai-expansion.txt", "jsonld": "https://wpnews.pro/news/alibaba-prices-hk-80-billion-new-share-placement-to-fund-ai-expansion.jsonld"}}