Alibaba raises $10.2 billion in Hong Kong to fund AI expansion

Key Points

• Alibaba places HK$80 billion ($10.2 billion) of new shares in Hong Kong, the largest primary follow‑on for a local listed company.
• All net proceeds are dedicated to AI infrastructure, including compute capacity and proprietary chips.
• Quarterly net profit fell 75% as capital expenditure rose 75% to 67.68 billion yuan.
• Cloud and AI revenue jumped 45% to 48.44 billion yuan; AI model services exceed 16 billion yuan in ARR.
• CEO Eddie Wu emphasized capex as essential to capture future AI growth.
• Alibaba opened two new availability zones in Paris, expanding its European cloud footprint.
• EU AI gigafactory programme totals about €20 billion, roughly twice the size of Alibaba’s raise.
• The offering ranks third globally in 2026 primary follow‑ons, after Alphabet and Intel.