Alibaba Raises $10.2 Billion for AI Infrastructure Expansion

Alibaba Group Holding Limited executed a record-breaking HK$80 billion (approximately $10.2 billion) share placement on the Hong Kong exchange starting August 24, 2026. The company issued 710 million new shares at HK$112.70 each, representing an 8.4% discount to the previous closing price. The proceeds are dedicated to expanding full-stack AI capabilities, including chips, computing infrastructure, and the deployment of AI models, such as the recently released Wan3.0 video generation model.

The fundraising follows a 75% year-on-year drop in June-quarter net profit, driven by capital expenditures that jumped to nearly $10 billion. While the offering was oversubscribed with $28 billion in orders—drawing significant interest from sovereign wealth funds like the Qatar Investment Authority and Norges Bank Investment Management—the stock plummeted between 8% and 11% due to dilution concerns.

To signal confidence, founder Jack Ma purchased more than HK$600 million in shares, while Chairman Joseph C. Tsai and CEO Eddie Wu together acquired over HK$200 million in stock. Conversely, investor Michael Burry liquidated his entire position, arguing that the company is shifting from a capital-light e-commerce model to a capital-intensive infrastructure firm. Management maintains that these investments have a high certainty of generating returns, with an estimated payback period of 2.5 to 3 years.