Alibaba stock slumps in Hong Kong after $10.2 billion share placement to fund AI
Alibaba said on Sunday its HK$80 billion ($10.21 billion) share placement finalised at HK$112.70 apiece - an 8.4% discount to its Friday close - is aimed at funding AI-related development, as it redoubles AI bets amid competition and simmering Sino-U.S. tech rivalry.
Alibaba's Hong Kong-listed shares plummeted after the company launched a $10.2 billion share placement to fund AI development, reflecting investor concerns about payback from massive AI spending. The HK$80 billion ($10.21 billion) offering, priced at HK$112.70 per share, represents an 8.4% discount to its Friday close and is aimed at bolstering AI-related projects amid growing competition and Sino-U.S. tech rivalry.
While the move dilutes shareholders' interest, it is expected to benefit the company in the long term, though concerns persist about the timing of returns on AI investments, especially as U.S. investors increasingly question the ROI of significant AI spending.
Brief written by urgent.news from Economic Times Tech's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
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