Alibaba Group Holding launched a new share issue worth HK$80 billion (₹95,000 crore or US$10.2 billion) in Hong Kong on Sunday, with all proceeds dedicated to expanding its artificial intelligence capabilities. This offering ranks as the third-largest primary follow-on share sale globally this year, following those by Alphabet and Intel, according to livemint.com.
The Chinese technology giant announced the share placement as part of its strategy to strengthen its AI investments amid a competitive tech landscape. The company confirmed the issuance of new shares totaling HK$80 billion, aiming to channel the entire amount into AI development efforts. This move comes after Alibaba reported a 75% decline in profits due to increased AI spending, as detailed by livemint.com.
This share sale underscores Alibaba's commitment to advancing its AI technology, positioning it alongside major global players like Alphabet and Intel, who also conducted significant follow-on offerings this year. The size of this capital raise highlights the growing importance of AI in the technology sector and Alibaba’s intent to remain competitive in this space, per livemint.com.
The share issue was launched on August 23, 2026, with the full proceeds allocated for AI expansion. This marks a pivotal step in Alibaba’s strategic focus on artificial intelligence, as it seeks to regain momentum following recent profit declines linked to its AI investments, according to livemint.com.