{"slug": "alibaba-seeks-10-billion-from-share-sale-for-ai-expansion", "title": "Alibaba Seeks $10 Billion From Share Sale for AI Expansion", "summary": "Alibaba Group Holding Ltd. is seeking to raise about HK$80 billion ($10.2 billion) from a share sale of 710 million shares at HK$112.7 each, a 3.6% discount to Friday's close, to fund its AI expansion. The placement would be Hong Kong's biggest follow-on offering on record, with proceeds earmarked for full-stack AI capabilities including infrastructure. The company's June-quarter profit plunged more than 75% to 10.5 billion yuan ($1.6 billion) amid rising AI costs.", "body_md": "(Bloomberg) -- Alibaba Group Holding Ltd. is seeking to raise about HK$80 billion ($10.2 billion) from a share sale, its latest move to compete for global leadership in artificial intelligence.\n\nMost Read from Bloomberg\n\n-\n[US Oil Refiners Face Import Squeeze From Biggest Foreign Seller](https://www.bloomberg.com/news/articles/2026-08-21/us-oil-refiners-face-import-squeeze-from-biggest-foreign-seller?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS) -\n[Nvidia Customers Notified About AI-Related Price Hikes Above 15%](https://www.bloomberg.com/news/articles/2026-08-22/nvidia-customers-notified-about-ai-related-price-hikes-above-15?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS) -\n[Dalio Says Sell Bonds, Buy Gold, Bitcoin as Debt Crisis Looms](https://www.bloomberg.com/news/articles/2026-08-21/dalio-says-sell-bonds-buy-gold-bitcoin-as-debt-crisis-looms?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS)\n\nThe online retail giant-turned-AI player is offering 710 million shares at HK$112.7 each, according to terms of the deal seen by Bloomberg News. That represents a discount of 3.6% to the closing price of Alibaba's American depositary receipts on Friday.\n\nThe placement would be Hong Kong's biggest follow-on offering by a company on record, according to data compiled by Bloomberg. It would also be the city's biggest share sale since 2021, when technology-investment firm Prosus NV sold $14.7 billion in shares of China's Tencent Holdings Ltd., according to data compiled by Bloomberg.\n\nThe deal comes as the Chinese company ratchets up quarterly capital spending to almost $10 billion, aiming to safeguard its position in a fiercely competitive global AI arena. It intends to use the proceeds to invest in full-stack AI capabilities, including by expanding and enhancing its infrastructure.\n\nAlibaba will be subject to a lockup of 90 days. China International Capital Corp., HSBC Holdings Plc, Morgan Stanley and UBS Group AG are arranging the deal, according to the terms.\n\nHangzhou-based Alibaba's profit plunged more than 75% for the June quarter to 10.5 billion yuan ($1.6 billion) and it registered a free-cash outflow of $6.6 billion, reflecting the rising cost of AI projects and computing infrastructure.\n\nChina's e-commerce leader this year cemented its status as a global artificial intelligence frontrunner after its flagship Qwen offering became the world's most popular model family.\n\nAlibaba is among the biggest spenders on AI among its Chinese rivals. The company, a domestic leader in cloud computing, has been hiving off assets and deploying capital toward everything from chips and data centers to large-language model development.\n\n(Adds size and scope in third paragraph, updates fifth paragraph with more banks on the deal.)\n\nMost Read from Bloomberg Businessweek\n\n-\n[The Midwest City Keeping the American Dream Alive for First-Time Homebuyers](https://www.bloomberg.com/news/articles/2026-08-13/michigan-housing-market-offers-new-opportunities-for-first-time-buyers?utm_campaign=bw&utm_medium=distro&utm_source=yahooUS) -\n[New York's Israeli Restaurants Are Doing Better Than You Might Think](https://www.bloomberg.com/news/articles/2026-08-21/israeli-restaurants-in-new-york-like-malka-or-esh-and-motek-are-booking-up?utm_campaign=bw&utm_medium=distro&utm_source=yahooUS)\n\n©2026 Bloomberg L.P.", "url": "https://wpnews.pro/news/alibaba-seeks-10-billion-from-share-sale-for-ai-expansion", "canonical_source": "https://ca.finance.yahoo.com/news/alibaba-seeks-10-billion-share-073532899.html", "published_at": "2026-08-23 07:35:32+00:00", "updated_at": "2026-08-23 11:14:11.319676+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure", "ai-policy"], "entities": ["Alibaba Group Holding Ltd.", "Bloomberg News", "Prosus NV", "Tencent Holdings Ltd.", "China International Capital Corp.", "HSBC Holdings Plc", "Morgan Stanley", "UBS Group AG"], "alternates": {"html": "https://wpnews.pro/news/alibaba-seeks-10-billion-from-share-sale-for-ai-expansion", "markdown": "https://wpnews.pro/news/alibaba-seeks-10-billion-from-share-sale-for-ai-expansion.md", "text": "https://wpnews.pro/news/alibaba-seeks-10-billion-from-share-sale-for-ai-expansion.txt", "jsonld": "https://wpnews.pro/news/alibaba-seeks-10-billion-from-share-sale-for-ai-expansion.jsonld"}}