Alibaba Group Holding said on Aug. 23 it plans to issue HK$80 billion (US$10.2 billion) in new shares and use the proceeds to invest in AI, including its AI capabilities and related infrastructure.

The company said the fundraising is intended to expand its AI business globally.

The deal is being structured as a placement of new Class B shares under a general mandate, a mechanism governed by Hong Kong listing Rule 13.36 that can allow the placement without a separate shareholder meeting if it stays within the mandate limits.

Alibaba said last week that revenue from its cloud and AI businesses rose 45% year on year in the second quarter, while its capital expenditure increased 75% from a year earlier to 67.7 billion yuan (US$10.1 billion).

🔗 Source: South China Morning Post

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