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Alibaba to issue $10 billion in shares to fund AI ambitions
🇩🇴 Dominican Republic /Technology

Alibaba to issue $10 billion in shares to fund AI ambitions

From Diario Libre · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Chinese tech giant Alibaba plans to issue $10.2 billion in new shares to fund its global artificial intelligence ambitions.
  • The company will use the net proceeds to expand and enhance its AI infrastructure, reinforcing its global leadership in AI.
  • Alibaba reported a 9% year-on-year revenue increase in its latest quarter, driven by the global AI boom, and is known for its popular open-source AI models like 'Qwen'.

Alibaba, the Chinese e-commerce and technology conglomerate, announced plans to issue approximately $10.2 billion (80 billion Hong Kong dollars) in new shares. The company aims to bolster its global standing in artificial intelligence by channeling these funds into expanding and improving its AI infrastructure.

Shareholders are keenly watching how Alibaba's substantial investments in AI will translate into tangible financial returns. The company stated that the capital increase is specifically designed to "reinforce the company's global leadership in AI." The entirety of the net proceeds from this share issuance will be dedicated to advancing its comprehensive AI capabilities.

The capital increase is realized with the objective of reinforcing the company's global leadership in the AI.

— AlibabaA statement from Alibaba explaining the purpose of the share issuance.

This strategic move comes as Alibaba reported a nearly 9% year-on-year increase in revenue for its latest quarter, reaching approximately 269 billion yuan ($40 billion). This growth was significantly propelled by the worldwide surge in demand for AI-powered products and services.

The tech giant is recognized for its 'Qwen' series of open-source AI models, which have garnered considerable popularity among developers globally. The investment signals Alibaba's commitment to maintaining its competitive edge in the rapidly evolving AI landscape.

mainly to expand and improve its AI infrastructure

— AlibabaDescribing how the company plans to utilize the net proceeds from the share issuance.
DistantNews Editorial

Originally published by Diario Libre in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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