# Alibaba Seeks $10 Billion From Share Sale for AI Expansion > Source: > Published: 2026-08-23 07:35:32+00:00 (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. Most Read from Bloomberg - [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) - [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) - [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) The 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. The 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. The 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. Alibaba 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. Hangzhou-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. China'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. Alibaba 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. (Adds size and scope in third paragraph, updates fifth paragraph with more banks on the deal.) Most Read from Bloomberg Businessweek - [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) - [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) ©2026 Bloomberg L.P.