Alibaba proposes US$10bil share placement to fund global AI drive
The firm has been ploughing tens of billions of dollars into AI, with its shareholders eager to see how it will monetise the huge investments.
Alibaba, the Chinese tech behemoth, has revealed plans to issue HK$80 billion, equivalent to US$10.2 billion, in new shares on the Hong Kong market. This move aims to fuel the company's global artificial intelligence (AI) objectives. Alibaba, headquartered in Hangzhou, has been pouring billions into AI research and development, with investors keenly awaiting the monetization of these substantial investments.
The equity offering is designed to solidify Alibaba's leadership in the global AI arena, according to a company statement. All net proceeds from the share placement will be directed towards bolstering Alibaba's comprehensive AI capabilities. This includes expanding and upgrading its AI infrastructure.
In its most recent quarter, Alibaba reported nearly US$40 billion in revenue, marking a 9% year-on-year increase. This growth surge is attributed to the worldwide AI craze, which has fueled demand for Alibaba's products. The company is renowned for its open-source Qwen AI models, which have garnered popularity among developers globally.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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