Chinese tech giant says proceeds will support AI infrastructure and expand its global capabilities

Chinese technology giant Alibaba plans to raise HK$80 billion ($10.2 billion) through a new share issue in Hong Kong to support its global artificial intelligence ambitions.

The company said on Sunday that all net proceeds from the equity placement would be used to strengthen its AI capabilities, including expanding and upgrading its AI infrastructure.

“The Equity Placement is being undertaken to extend the Company's global AI leadership,” Alibaba said in a statement.

The fundraising plan comes as Alibaba continues to invest heavily in artificial intelligence, with shareholders watching closely for evidence that the company can turn its large AI investments into stronger business growth.

Alibaba reported nearly 269 billion yuan ($40 billion) in revenue for its latest quarter on Thursday, marking a 9 per cent increase from the same period a year earlier.

The company has been among the major Chinese technology firms investing heavily in AI as demand for related products and services grows globally.

Alibaba is also known for its open-source Qwen family of AI models, which has attracted developers internationally.

The planned share sale will provide the company with additional capital as it expands its AI infrastructure and seeks to strengthen its position in the increasingly competitive global AI market.