Alibaba Group is seeking to raise about HK$80 billion, or roughly $10.2 billion, through a new share placement in Hong Kong, with the Chinese technology company planning to direct the proceeds towards expanding its artificial intelligence capabilities and infrastructure.
The company announced on August 23 that it proposes to issue new ordinary shares to non-US investors outside the United States, subject to market and other conditions. Alibaba said 100% of the net proceeds from the placement will be invested in its full-stack AI capabilities, including the expansion and enhancement of AI infrastructure.
The proposed fundraising comes as Alibaba increases spending across AI models, cloud computing, proprietary chips and applications. The company has been positioning AI and cloud as a key growth engine while demand for computing capacity rises alongside the adoption of generative and agentic AI.
Alibaba's latest quarterly results showed the growing contribution of AI to its business. Revenue from its AI Cloud and Compute Services division reached $7.1 billion in the quarter ended June 30, up 45% year-on-year. AI-related product revenue reached $1.8 billion and recorded triple-digit year-on-year growth for the twelfth consecutive quarter.
The company has also stepped up capital expenditure to support the expansion. Capital expenditure reached approximately $10 billion during the June quarter, representing a 75% increase from the corresponding period a year earlier. Alibaba attributed the rise partly to continued investment in AI infrastructure to meet growing customer demand.
Alibaba's AI strategy spans multiple layers of the technology stack. Its portfolio includes proprietary processors developed through T-Head, the Qwen family of foundation models and AI applications for enterprise and consumer users. The company has also been integrating AI capabilities into its cloud and commerce businesses.
Earlier this month, Alibaba introduced Qwen3.8-Max, its latest flagship foundation model. The company said the Qwen model series has surpassed three billion downloads globally and generated more than 300,000 derivative models. Alibaba has also launched QwenWork, an AI-native workplace agent platform designed for enterprise productivity.
The proposed share placement follows a period of substantial capital raising and investment by Alibaba. In September 2025, the company completed an approximately $3.2 billion offering of zero-coupon convertible senior notes.
Alibaba ended its latest quarter with approximately $69.9 billion in cash and liquid investments. The new equity financing would provide additional capital for its AI expansion as competition among technology companies intensifies around models, chips, cloud infrastructure and AI applications.
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