The company said<\/a> it plans to use all of the net proceeds to invest in its full-stack AI capabilities, including expanding and enhancing its AI infrastructure.<\/p>\n Alibaba will issue 710 million new shares at HK$112.70 apiece, compared with the stock’s Friday closing price of HK$123. Shares were last trading 8.4% lower at HK$112.7.<\/p>\n The share placement, expected to close on Wednesday, comes just days after Alibaba reported<\/a> a 75% drop in profit for the June-quarter as heavy AI spending weighed on its results. Capital expenditure jumped 75% to 67.7 billion yuan. <\/p>\n Vey-Sern Ling, senior equity advisor at UBP, told CNBC last week following Alibaba’s latest earnings that the company was well-positioned to pursue AI growth.\u00a0<\/p>\n “I think Alibaba clearly is well positioned to chase that growth, given that they have a cloud computing arm, they have a very strong AI model,” he said, adding that profits might weaken in the near term, while capex might rise.<\/p>\n Alibaba has been ramping up investment in AI as it seeks to make the technology a key driver of future growth.The company last year announced<\/a> plans to invest at least 380 billion yuan in cloud computing and AI infrastructure over the next three years.\u00a0<\/p>\n Alibaba’s Chinese tech peers have also been ramping up AI spending. Tencent’s capital expenditure rose<\/a> 65% from the previous quarter to 52.8 billion yuan in the June-quarter as the company continued to invest in computing infrastructure to monetize its AI models.\u00a0<\/p>\n![\"UBP:](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/08\/108352542-17872875281787287524-47893590691-1080pnbcnews.jpg\")
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