Alibaba Raises $10.2 Billion in 710 Million-Share Sale for AI, Diluting Holders 3.7%
Updated
Updated · 24/7 Wall St. · Aug 24
Alibaba Raises $10.2 Billion in 710 Million-Share Sale for AI, Diluting Holders 3.7%
3 articles · Updated · 24/7 Wall St. · Aug 24
Summary
$10.2 billion from 710 million new shares will go entirely to Alibaba’s AI buildout, including computing and data-center capacity, with the placement priced at HK$112.70 and set to close Aug. 26.
AI spending is already straining the business: June-quarter capital expenditure jumped 75% to 67.68 billion yuan, net income fell 75% to 10.5 billion yuan, and free cash flow worsened to a 44.7 billion yuan outflow.
Alibaba’s cloud and AI revenue rose 45% to 48.44 billion yuan, but buybacks have slowed sharply as cash is redirected—just $956 million repurchased versus far heavier spending in 2025.
Michael Burry said he had already switched his Alibaba stake into JD.com and would only reconsider if Alibaba fell by half, while Chairman Joseph Tsai and CEO Eddie Wu bought about HK$118.2 million of stock after the sale.