Alibaba’s shares fell by as much as 10% on Monday after the company decided to price a $10.20 billion share placement for non-U.S. investors.
The company announced that it intends to allocate all net proceeds toward developing its comprehensive AI capabilities, focusing on expanding and improving its AI infrastructure.
The share placement, anticipated to close on Wednesday, follows shortly after Alibaba reported a 75% decline in profit for the June quarter due to heavy AI investments impacting its results. Capital expenditure increased by 75%, reaching 67.7 billion yuan.
This deal is the biggest primary follow-on offering ever by a Hong Kong-listed company and the third-largest worldwide this year, following offerings of nearly $85 billion from Alphabet and $20 billion from Intel.
The news comes as Alibaba has stepped up its AI investments, intending to make it a key part of future expansion.
In 2025, the company announced plans to invest at least 380 billion yuan in cloud computing and AI infrastructure over the next three years.
By CEO NA Editorial Staff
