Alibaba to sell gaming arm for US$1.5 billion in boost to AI pivot: Bloomberg

Alibaba Group Holding is selling its gaming arm, Lingxi Games, to Asian private equity firm Trustar Capital in a deal worth at least US$1.5 billion, according to an internal memo reviewed by Bloomberg News. The sale is part of Alibaba's broader reorganization under CEO Eddie Wu to focus on artificial intelligence and cloud computing, with a goal of reaching US$100 billion in AI revenue in five years.

Alibaba to sell gaming arm for US$1.5 billion in boost to AI pivot: Bloomberg Firm undergoing a broader corporate reorganisation under CEO Eddie Wu ALIBABA Group Holding is selling its gaming arm in a deal worth at least US$1.5 billion that will boost the Chinese e-commerce leader’s pivot to AI. Asian private equity firm Trustar Capital has reached an agreement to acquire Lingxi Games, according to an internal memo distributed on Monday Aug 17 and reviewed by Bloomberg News. “Alibaba is handing Lingxi to Trustar due to better focus on its strategic priorities,” said Zhou Bingshu, chief executive officer of Lingxi Games, without disclosing the size of the deal. The transaction may value the studio at more than US$1.5 billion, Bloomberg News reported on Aug 14. Alibaba and Trustar did not immediately respond to a request for comment. Alibaba is undergoing a broader corporate reorganisation under chief executive officer Eddie Wu, divesting non-core assets while making artificial intelligence and cloud computing a top strategic priority with the aim of reaching US$100 billion in AI revenue in five years. In August, Alibaba released its biggest ever AI model, https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/alibaba-releases-new-qwen-ai-model-performance-rivalling-anthropics-fable claiming performance on par with global leader Anthropic in the latest Chinese breakthrough to challenge US rivals. Lingxi’s flagship and top-grossing game, Three Kingdoms: Strategy Edition , is a massive multiplayer online strategy title developed in partnership with Japan’s Koei Tecmo Holdings. BLOOMBERG Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free. Share with us your feedback on BT's products and services TRENDING NOW /pulse?ref=trending-now Financial planners urge investors to consider other options as T-bills yields lose steam Singapore may be expected to tighten measures after US ‘transshipment scam’ report: economists How BYD disrupted Singapore’s car market – and why the strategy is turning on itself UOB’s digital wealth sales, transactions jump almost 50% as clients invest more online