Jack Ma buys HK$600 million of Alibaba shares, signalling AI confidence: sources

Alibaba Group Holding founder Jack Ma has recently purchased more than HK$600 million worth of the company's shares on consecutive days, according to sources. This move is seen as a demonstration of his strong confidence in Alibaba's long-term prospects, particularly in its artificial intelligence (AI) ambitions, according to one source.

Alibaba chairman Joe Tsai and CEO Eddie Wu Yongming also made purchases, accumulating a combined HK$202 million in share purchases over the past two days. Tsai purchased approximately HK$82 million on Tuesday, following an HK$80 million acquisition on Monday, with Wu contributing approximately HK$40 million on the same day. These personal investments came after Alibaba announced a new share issuance on Sunday, one of the largest fundraising efforts by a Chinese firm dedicated to AI development.

In response to the story, Alibaba shares saw a 1.5 percent increase, closing at HK$114.20 in Hong Kong on Tuesday. The company's AI initiatives have been progressing well, and the recent share purchases have added to the confidence in Alibaba's future. Alibaba's share issuance, the company's first since its 2019 listing in Hong Kong, has attracted strong investor demand, meeting its benchmark of HK$80 billion within hours and receiving nearly three times the oversubscribed demand.

The company expects its AI investments to break even within three years, with a three-year commitment of 380 billion yuan in AI infrastructure investment announced in early 2025.