Alibaba Is Selling $10.2 Billion of Stock to Fund AI. Alphabet and Intel Went First.
Motley Fool·
- Alibaba priced an 80 billion Hong Kong dollar placement, equivalent to about $10.2 billion, by selling 710 million newly issued shares to fully fund its AI infrastructure.
- This follows similar major stock sales by Alphabet and Intel, highlighting a broader industry trend where the massive scale of the AI build-out exceeds reliance on cash flow alone.
- While the offering expands Alibaba's AI capabilities, it results in an immediate dilution for existing shareholders as the company aims to balance heavy capital expenditures with accelerating cloud revenue growth.