Alibaba raises £7.5bn to accelerate AI investment

Alibaba is raising £7.5bn via a major share sale as it accelerates its AI push. The company will issue 710 million new shares on Hong Kong’s market at about £10.54 each, aiming to collect roughly £7.5bn. Alibaba said the proceeds will fund its “full stack” AI capabilities, including chips, computing infrastructure and AI models. The offering is described as the largest-ever primary follow-on by a Hong Kong-listed firm and the third-largest globally this year, after fundraisings by Alphabet and Intel. Despite strong demand—orders around £20.5bn—Alibaba shares fell nearly 10% in early Hong Kong trading after the price was set at an 8.4% discount to Friday’s close. The timing follows reports that quarterly profits dropped 75%, while capex rose 75% to about £7.4bn and revenue increased 9% to £29.3bn.