Alibaba to raise $10 bln via share placement to fund AI expansion

Alibaba Group plans to raise $10.21 billion by issuing a new share placement, with the proceeds solely dedicated to expanding its artificial intelligence infrastructure and capabilities. The Chinese tech giant will release 710 million shares at a price of HK$112.70 per share, which constitute approximately 3.57% of the company's expanded share capital.

This share placement, anticipated to conclude on August 26, subject to customary conditions, will generate net proceeds of around HK$79.7 billion. The offered shares are intended for at least six professional, institutional, or other investors outside the United States. Alibaba aims to utilize all the proceeds to bolster its global AI leadership, focusing on expanding and enhancing its AI infrastructure.

The fundraising coincides with Alibaba's increasing investment in AI and cloud computing as the company faces fierce competition within China's technology sector. The newly issued shares will hold equal status with existing shares, and Alibaba has agreed to a 90-day lock-up period following the successful completion of the share placement.