Night view of Alibaba’s headquarters building along the Huangpu River in Shanghai, China, on November 16, 2025.
Photo | Future Publishing | Getty Images
alibaba Shares fell as much as 10% in Hong Kong on Monday after the Chinese tech giant allotted 80 billion Hong Kong dollars ($10.2 billion) of new shares to non-U.S. investors.
The company said it plans to use all of the net proceeds to invest in full-stack AI capabilities, including expanding and enhancing its AI infrastructure.
Alibaba will issue 710 million new shares at HK$112.70 per share, compared to Friday’s closing price of HK$123. The stock last traded 8.4% lower at HK$112.7.
The stock offering is expected to close on Wednesday and comes days after Alibaba reported a 75% drop in June quarter profits as heavy AI investments weighed on results. Capital investment increased by 75% to 67.7 billion yuan.
Baisan Lin, senior equity advisor at UBP, told CNBC last week following Alibaba’s latest financial results that Alibaba is well-positioned to pursue AI growth.
“Given that Alibaba has a cloud computing arm and has a very strong AI model, I think it’s clearly well-positioned to chase that growth,” he said, adding that profits could weaken in the short term while capital spending could rise.
Alibaba has stepped up its investment in AI, with the aim of making AI technology a key driver of future growth, with the company last year announcing plans to invest at least 380 billion yuan in cloud computing and AI infrastructure over the next three years.
Chinese tech giant Alibaba is also increasing spending on AI. Tencent’s capital expenditures rose 65% from the previous quarter to 52.8 billion yuan in the June quarter as the company continued to invest in computing infrastructure to monetize its AI models.
