Alibaba to Place HKD 80 Billion in New Shares for AI Infrastructure

Alibaba has announced a plan to place new shares to non-US investors outside the United States, aiming to raise HKD 80 billion. This marks the company's first share placement since its Hong Kong listing in 2019, with 100% of the proceeds dedicated to investing in full-stack AI capabilities and infrastructure. This massive capital raise highlights the intensifying global competition in AI infrastructure, where tech giants must invest heavily to maintain their market positions. It signals Alibaba's strategic pivot to prioritize AI and cloud computing, even as it faces pressure from a recent decline in net income. The share placement announcement coincided with Alibaba's Q1 FY2027 financial report, which showed a 9% year-over-year revenue growth to 268.953 billion RMB, alongside a 76% drop in net income to 10.537 billion RMB. The placement specifically targets non-US persons outside the United States.