Alibaba to raise $10.2b for global AI push
Alibaba’s capital expenditure rose 75% year on year to 67.7 billion yuan.
Alibaba Group Holding plans to issue US$10.2 billion in new shares to bolster its AI efforts, the Chinese tech giant announced on Sunday. The funds will be allocated towards expanding and enhancing Alibaba's AI infrastructure, solidifying the company's position as a global AI leader. This decision comes as banks have received indications of interest in excess of the deal size, driven by strong investor demand, particularly from sovereign wealth funds and global long-only investors.
Alibaba, which increased the size of the offering to HK$80 billion due to this demand, anticipates its AI investments to break even within three years, with the payback period potentially shortened to two years as gross margins rise. The share issuance represents one of China's largest AI-dedicated financing cases, as well as Alibaba's first new share placement since its Hong Kong listing in 2019.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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