Alibaba Seeks $10B from Hong Kong Shares to Fund AI Plans

Alibaba is turning to Hong Kong’s capital markets to raise funds for its expanding AI ambitions, launching a $10.2 billion share sale.

The fundraising would represent the biggest primary follow-on offering ever completed by a company listed in Hong Kong. Globally, it would also be the third-largest primary follow-on share sale of 2026, behind transactions conducted by Intel and Alphabet.

The Chinese tech group said the entire amount raised will be directed toward strengthening its AI operations. Its plans cover the broader AI technology stack, including computing hardware, supporting infrastructure, as well as the creation and rollout of AI models.

According to a term sheet, Alibaba intends to issue 710 million ordinary shares priced at HK$112.70 ($14.8) each. The price is about 3.6% below the company’s latest closing level.

Alibaba has not provided a detailed breakdown showing how much of the proceeds will go toward chips, data infrastructure, models, or other areas of its AI strategy. The company also declined to provide further information beyond its regulatory filing.

The fundraising comes shortly after Alibaba disclosed its latest quarterly results. During the April-to-June period, the company said it had already used almost half of the capital allocated under its three-year investment program.

Management also indicated that the anticipated recovery period for AI spending is improving. The company expects the time required to recoup its AI investments to shorten to roughly 2.5 years, compared with an earlier estimate of three years, as demand for related services continues to grow.

That spending has weighed heavily on profitability. Alibaba’s quarterly net income dropped 75% compared with the same period last year as the company increased investment in AI-related infrastructure.

Chief Executive Eddie Wu said during the earnings conference that significant spending on computing capacity was necessary to position Alibaba for future expansion. The company has been increasing its investment as demand for AI services and computing resources accelerates.

Investor appetite for the latest offering appears strong. Two people familiar with the transaction said the deal attracted substantial interest, including from sovereign wealth funds. The sources added that Alibaba expanded the transaction after demand exceeded the number of shares initially offered.

HSBC, China International Capital Corporation, Morgan Stanley, and UBS are acting as joint bookrunners.

Alibaba said the placement was structured as an offshore transaction and was not registered under U.S. securities regulations. As a result, American investors were excluded from taking part.

The fundraising reflects a broader global surge in AI infrastructure spending. Technology companies in both China and the U.S. have committed enormous sums to computing systems, semiconductor capacity, and data centers.

Meta, Alphabet, Microsoft, and Amazon are collectively expected to spend around $725 billion on capital expenditure this year, with a significant share expected to support AI infrastructure and related technologies.

Analysts will be wondering whether U.S. tech firms like D-Wave Quantum Inc. (NYSE: QBTS) could also consider cross-listing on other exchanges in order to obtain additional investor funding for their tech development programs.

About AINewsWire

AINewsWire (“AINW”) is a specialized communications platform with a focus on the latest advancements in artificial intelligence (“AI”), including the technologies, trends and trailblazers driving innovation forward. It is one of 75+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, AINW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists, and the general public. By cutting through the overload of information in today’s market, AINW brings its clients unparalleled recognition and brand awareness.

AINW is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from AINewsWire, text “AI” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit www.AINewsWire.com

Please see full terms of use and disclaimers on the AINewsWire website applicable to all content provided by AINW, wherever published or re-published: https://www.AINewsWire.com/Disclaimer

AINewsWire
Austin, Texas
www.AINewsWire.com
512.354.7000 Office
Editor@AINewsWire.com

AINewsWire is powered by IBN