Alibaba Launches $10.2 Billion Share Placement for AI Spending

Aug 24, 2026
Alibaba Group launched a HK$80 billion, or $10.2 billion, share placement in Hong Kong and plans to use the proceeds for AI capabilities including chips, infrastructure and model deployment.
Alibaba Launches $10.2 Billion Share Placement for AI Spending

Alibaba Group launched a HK$80 billion ($10.2 billion) Hong Kong share placement to fund AI spending, Reuters reports. The company said all net proceeds will go to full stack AI capabilities, including chips, infrastructure, and the development and deployment of AI models.

The placement would be the largest primary follow on offering by a company listed in Hong Kong. A term sheet reviewed by Reuters showed Alibaba planned to sell 710 million ordinary shares at HK$112.70 each, a 3.6% discount to its latest closing price.

Alibaba reported last week that net profit for the April to June quarter fell 75% from a year earlier as AI related capital spending increased. The company also said it had already spent nearly half of its three year capital expenditure plan.

The company said the share placement was not registered under U.S. securities laws as an offshore transaction, so American investors were not eligible to participate.

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