Alibaba Launches $10.2 Billion Share Placement as AI Spending Cuts Quarterly Profit 75%
Updated
Updated · Financial Times · Aug 23
Alibaba Launches $10.2 Billion Share Placement as AI Spending Cuts Quarterly Profit 75%
3 articles · Updated · Financial Times · Aug 23
Summary
HK$80 billion in new shares will be sold to non-US investors, with Alibaba saying all net proceeds will go to full-stack AI capabilities and expanded infrastructure.
That funding push follows a $6.6 billion free-cash outflow in the June quarter and a 75% drop in net profit to about $1.5 billion as AI spending accelerates.
Alibaba is tapping a hot Chinese market for AI deals after releasing its Qwen 3.8-Max model, with recent listings such as CXMT and Unitree surging 466% and more than 600% on debut.
The capital raise also lands as Alibaba fights US pressure: the Pentagon restored it to a blacklist in June, and Xi Jinping and Donald Trump are due to discuss tech restrictions next week.