Alibaba is making a major move to strengthen its position in the global artificial intelligence market, with plans to raise about HK$80 billion ($10.2 billion) through a new share sale in Hong Kong.
The Chinese technology giant said the fresh capital will be used to expand its artificial intelligence capabilities and build the infrastructure needed to support its growing AI business.
The company, based in Hangzhou, said the share placement is aimed at extending its leadership in the global AI industry. Alibaba plans to invest all the money raised after expenses into its AI operations, particularly its “full stack” AI capabilities.
A major part of the investment will go into expanding and improving AI infrastructure. This could include computing capacity, data centres, cloud technology and other systems required to develop and operate advanced AI models.
Alibaba has been spending heavily on artificial intelligence as competition in the sector intensifies globally. The company has committed tens of billions of dollars to AI and related infrastructure as it seeks to benefit from the rapid growth in demand for AI-powered services.
The latest fundraising effort also comes as investors watch closely to see how Alibaba can turn its large AI investments into stronger revenue and profits.
The company’s most recent financial results showed some signs of momentum. Alibaba reported almost 269 billion yuan ($40 billion) in revenue for its latest quarter, representing a 9 per cent increase compared with the same period a year earlier.
The growth was supported partly by rising demand linked to the global AI boom, which has increased interest in cloud computing, AI applications and digital services.
Alibaba is also known for its open-source Qwen artificial intelligence models. The Qwen family has attracted developers around the world and has helped Alibaba become a more prominent player in the rapidly expanding AI ecosystem.
The company’s decision to raise billions of dollars through the Hong Kong market highlights the scale of its AI ambitions. Rather than relying only on its existing resources, Alibaba is seeking additional funding to accelerate the development of technologies that could shape its future growth.
The move also reflects the wider technology race, as companies in China and other parts of the world invest heavily in AI infrastructure and models.
For Alibaba, the challenge will now be to convert its huge spending on artificial intelligence into commercially successful products and services. If it succeeds, the investment could strengthen its cloud business, AI offerings and position in the global technology market.
