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Alibaba is seeking to strengthen its global artificial intelligence market position through a significant share offering. The Chinese technology giant plans to use the proceeds to expand its full-stack AI capabilities, encompassing chips, computing infrastructure, and model development.

The company is offering around 710 million shares at a 3.6% discount to its most recent closing price. Strong investor demand reportedly prompted Alibaba to increase the size of the offering, according to Reuters.

This fundraising effort aligns with Alibaba's increased spending on AI and cloud infrastructure. The company has previously committed to investing 380 billion yuan (approximately $56 billion) over three years in the sector and has already utilized about half of that sum. Despite a 75% year-on-year decline in quarterly net profit for the April-June period, revenue from its cloud and AI-related services saw a 45% increase, indicating growing demand for these products.

Alibaba stated that the share placement is designed to support long-term growth amidst intensifying competition in AI infrastructure, models, and services among both Chinese and international technology firms.