Alibaba Group is raising about HK$80 billion ($10.2 billion) through a share placement in Hong Kong, marking the largest primary follow-on offering by a Hong Kong-listed company, as the Chinese technology group accelerates investment across artificial intelligence.
The company is selling approximately 710 million shares at HK$112.70 each, representing a 3.6% discount to its previous closing price, according to reports from Reuters and Bloomberg.
Proceeds Target Full-Stack AI Strategy
Alibaba plans to direct the net proceeds toward its “full-stack” AI capabilities, spanning chips, computing infrastructure and artificial intelligence model development.
The capital raise underscores the scale of investment required as Alibaba seeks to strengthen its position in AI while expanding the infrastructure underpinning its cloud and technology businesses.
The company has increasingly positioned artificial intelligence and cloud computing at the center of its long-term strategy, directing capital toward computing capacity, proprietary models and technologies supporting enterprise AI adoption.
Record Hong Kong Follow-On Offering
At HK$80 billion, the transaction represents a milestone for Hong Kong’s equity market, becoming the largest primary follow-on share offering by a company listed in the city.
The offering also comes as Alibaba reshapes its broader portfolio around its highest-priority technology businesses. The company has been reallocating resources and capital as competition intensifies among Chinese and U.S. technology groups to develop AI models and secure the infrastructure needed to run them.
Alibaba’s decision to raise more than $10 billion specifically for its AI strategy highlights how the global artificial intelligence race is increasingly becoming not only a competition for technology and talent, but also for access to capital and computing infrastructure.
