Alibaba proposes $10 billion share placement to fund global AI drive
The Hangzhou-based firm has been ploughing tens of billions of dollars into AI, with its shareholders eager to see how it will monetise the huge investments. The company intends to use all of the net proceeds to invest in its "full stack AI capabilities, including to expand and enhance its AI infrastructure", it said.
Chinese technology behemoth Alibaba announced on Sunday its intention to issue HK$80 billion ($10.2 billion) in new shares on the Hong Kong stock market. /p
The Hangzhou-based firm has been investing tens of billions of dollars into artificial intelligence (AI) technology, with investors keen to observe how it plans to profit from this significant expenditure. /p
Alibaba explained in a statement that the Equity Placement is being conducted "to extend the Company's global AI leadership." /p
The company intends to utilize all the net proceeds from the share issue to bolster its "full stack AI capabilities," including expanding and enhancing its AI infrastructure, it added. /p
In its most recent quarter, Alibaba reported nearly 269 billion yuan ($40 billion) in revenue—a nine percent year-on-year increase—driven by the global AI frenzy fueling demand for its products. /p
Renowned for its open-source "Qwen" AI models, Alibaba's offerings have garnered popularity among developers worldwide.
Written by urgent.news from The Peninsula Qatar Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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