Alibaba secures 10 billion in HK sale
Alibaba announced that it has raised $10.2 billion through the largest secondary share offering in Hong Kong, aimed at funding its expansion into artificial intelligence. The company sold 710 million shares at a price of 112.7 Hong Kong dollars per share, reflecting its commitment to double down on AI technologies, having allocated over 380 billion yuan to this field over three years, including the development of large language models such as the "Qwen" model. However, the company faced criticism from investor Michael Burry, who stated that return on capital would decline and that the stock price should be halved to regain investor interest. This investment comes at a time when Alibaba is suffering from a profit decline of more than 75%, with the costs of AI projects and infrastructure exceeding $10 billion. Additionally, the company will undergo a 90-day lock-up period, amid weak financial performance and operational challenges.
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