Alibaba Sells $10.2 Billion in Shares to Invest in Artificial Intelligence

Alibaba is selling shares worth 80 billion Hong Kong dollars, approximately 10.2 billion US dollars, on the Hong Kong Stock Exchange. The proceeds will be entirely directed toward artificial intelligence development.

The company plans to sell 710 million shares at a price of 112.70 Hong Kong dollars each. If the transaction is completed, this will be the largest secondary share offering by a company listed on the Hong Kong Stock Exchange.

Alibaba plans to spend the funds on chips, necessary technical infrastructure, and the creation and implementation of artificial intelligence models.

Last week, Alibaba announced that it has already spent nearly half of its planned three-year investment in artificial intelligence. In the second quarter, the company's net profit declined 75% year-over-year, largely due to increased spending in this direction.

Demand for the share offering proved to be high. State investment funds also showed interest in the transaction, following which Alibaba increased the volume of shares for sale.

Source: Investing.com