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 set to sell its gaming arm, Lingxi Games, for a deal worth at least US$1.5 billion, according to Bloomberg News. The Chinese e-commerce leader is undergoing a comprehensive corporate restructuring under CEO Eddie Wu, with an emphasis on shifting focus towards artificial intelligence and cloud computing. Trustar Capital, an Asian private equity firm, has agreed to acquire Lingxi Games, which may value the studio at over US$1.5 billion.
The transaction comes as part of Alibaba's strategic pivot towards AI, aiming to generate US$100 billion in AI revenue within the next five years. Alibaba recently launched its most advanced AI model, which matches the performance of the global leader Anthropic. Lingxi Games' popular title, Three Kingdoms: Strategy Edition, is a massive multiplayer online strategy game developed in collaboration with Japanese company Koei Tecmo Holdings.
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