Chinese technology giant Alibaba has announced plans to raise HK$80 billion ($10.2 billion) through a new share sale in Hong Kong as it seeks to accelerate its global artificial intelligence expansion.
The Hangzhou-based company said on Sunday that the proposed equity placement would support its efforts to strengthen its position in the global AI industry.
“The Equity Placement is being undertaken to extend the Company’s global AI leadership,” Alibaba said in a statement.
The company added that it would channel all the net proceeds from the share sale into developing its “full stack AI capabilities, including to expand and enhance its AI infrastructure”.
Alibaba has been committing tens of billions of dollars to artificial intelligence as it races to expand its AI capabilities and benefit from growing demand for the technology.
The company’s latest fundraising plan comes as investors closely monitor whether its heavy AI spending will translate into stronger commercial returns.
Alibaba reported nearly 269 billion yuan ($40 billion) in revenue for its most recent quarter, representing a nine per cent increase from the same period a year earlier.
The company said the growth was supported in part by the global AI boom, which has increased demand for its products and services.
Alibaba is also known for its open-source Qwen AI models, which have attracted growing interest among developers around the world.
