HONG KONG / RankWire.AI / – Alibaba Group has announced an HK$80 billion share issuance aimed at financing AI investments and enhancing its AI infrastructure. The company plans to issue 710 million new ordinary shares at HK$112.70 each, equating to roughly US$10.2 billion based on current exchange rates. The transaction is expected to finalize by Aug. 26, pending standard conditions.
Alibaba stated that all net proceeds will be dedicated to developing its comprehensive AI capabilities. This funding will support infrastructure upgrades and expansion across its AI ecosystem, which includes cloud services, models, chips, and applications. Notably, the Qwen model family and Alibaba Cloud services are central components of this platform.
The share offering targets international investors outside the U.S. through offshore channels. The HK$112.70 price is 8.4% below Alibaba’s HK$123 closing price on Friday. Following the announcement, Hong Kong-listed shares declined as much as 10%, reaching HK$110.10 in early Monday trading. Alibaba also maintains a presence in New York via American depositary shares under the BABA ticker.
Alibaba’s AI infrastructure investment accelerates globally
This fundraising aligns with Alibaba’s recent surge in capital expenditure on computing infrastructure, which hit RMB67.68 billion (approximately US$10 billion) in the quarter ending June 30. This marks a 75% increase from RMB38.68 billion a year earlier, driven by ongoing AI infrastructure investments, rising computing demand, and increased chip costs.
In the June quarter, Alibaba reported revenue of RMB268.95 billion (around US$39.6 billion), reflecting a 9% year-over-year rise. Revenue from AI Cloud and Compute Services reached RMB48.44 billion (about US$7.1 billion), growing 45% from the previous year. Revenue from AI-related products hit RMB12.38 billion, marking triple-digit annual growth for 12 straight quarters.
New share issuance reinforces Alibaba’s AI ambitions
The recent funding complements Alibaba’s RMB380 billion AI and cloud infrastructure investment pledge made in February 2025, surpassing its entire spending in these areas over the previous decade. The company continues expanding computing capacity and developing cloud platforms, AI models, and proprietary semiconductor technology.
This increased investment has coincided with softer quarterly profits but faster growth in cloud revenue. For the June quarter, Alibaba reported a net income of RMB10.44 billion, down 75% from a year earlier. Its free cash flow showed a net outflow of RMB44.67 billion, primarily due to higher cloud infrastructure costs. The HK$80 billion placement provides Alibaba with additional funds specifically earmarked for full-stack AI development and infrastructure enhancement.