HONG KONG / RankWire.AI / – Alibaba Group has announced an HK$80 billion share offering aimed at boosting its investments in artificial intelligence and enhancing its AI infrastructure. The Chinese tech giant plans to issue 710 million new ordinary shares at HK$112.70 each, amounting to roughly US$10.2 billion based on current exchange rates. The company anticipates closing this transaction on Aug. 26, pending standard conditions.
All net proceeds are slated to fund its comprehensive AI capabilities, with the expenditure covering upgrades and expansion of its AI infrastructure. Alibaba has developed an AI ecosystem that includes cloud computing, models, chips, and applications, with the Qwen model family and Alibaba Cloud services being central components of this platform.
The placement primarily targets non-U.S. investors outside the United States through offshore channels. The HK$112.70 offering price is 8.4% lower than Alibaba’s HK$123 closing price on Friday. Shares listed in Hong Kong declined as much as 10%, reaching HK$110.10 during early Monday trading. Additionally, Alibaba is publicly traded in New York via American depositary shares under the ticker BABA.
AI infrastructure investment grows within Alibaba
This fundraising follows a notable surge in Alibaba’s expenditure on computing infrastructure, which amounted to RMB67.68 billion—approximately US$10 billion—during the quarter ending June 30. This represented a 75% rise from RMB38.68 billion a year earlier, driven by ongoing AI infrastructure investments, increased demand for computing power, and rising chip component prices.
Alibaba posted quarterly revenue of RMB268.95 billion, roughly US$39.6 billion, marking a 9% increase year-over-year. Revenue from AI Cloud and Compute Services reached RMB48.44 billion, or about US$7.1 billion, with a growth of 45% compared to the previous year. Revenue from AI-related products hit RMB12.38 billion, maintaining triple-digit annual growth for the 12th consecutive quarter.
Share offering reinforces Alibaba’s AI ambitions
This latest capital raise complements Alibaba’s investment program launched in February 2025, which commits at least RMB380 billion to AI and cloud infrastructure over three years—an amount surpassing its total expenditure in these areas over the previous decade. The company has continued to expand its computing capacity while developing its cloud platform, AI models, and internally designed semiconductor technology.
This increased investment has coincided with weaker quarterly profits but accelerated cloud revenue growth. Alibaba reported a net income of RMB10.44 billion for the June quarter, down 75% from the same period last year. Its free cash flow reflected a net outflow of RMB44.67 billion, mainly due to higher spending on cloud infrastructure. The HK$80 billion placement provides Alibaba with additional capital specifically allocated for its full-stack AI development and infrastructure projects.