Alibaba is selling its gaming studio for at least $1.5 billion to help fund AI buildout, mirroring Micron's exit from consumer business — dumps entire stake in Lingxi Games, which made 'Three Kingdoms: Strategy Edition'
Alibaba has agreed to sell its game development unit, Lingxi Games, to Asian private equity firm Trustar Capital, according to an internal staff memo.
Alibaba has sold its gaming studio, Lingxi Games, to Asian private equity firm Trustar Capital for at least $1.5 billion, according to an internal memo sent by Lingxi CEO Zhou Bingshu. Bloomberg reported the studio's value to be no less than $1.5 billion. The sale transfers the entire stake in the studio, allowing Alibaba to focus on its AI infrastructure program which has a budget exceeding its initial $53 billion target.
The deal leaves Alibaba's consumer business centered on e-commerce and its Qwen chatbot. Alibaba had committed over $53 billion to cloud and AI infrastructure in February last year, exceeding its previous decade's total investment. Trustar, led by former Alibaba executive Zhou, will retain the management team of the studio.
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Also reported by 1 other outlet
- Alibaba to sell Lingxi Games in over $2 bn deal qatar-tribune.com
