Alibaba Launches Record $10 Billion Share Sale to Enter the AI Race

Alibaba Group Holding (BABA) seeks to raise about $10 billion in a share sale.

The Chinese e-commerce and cloud computing giant said it will channel 100% of net proceeds into full-stack AI capabilities.

Alibaba Wants to Enter the AI Race

Alibaba is offering 710 million ordinary shares at HK$112.70 each, a 3.6% discount to Friday's close, according to Bloomberg. The deal would mark the largest-ever primary follow-on offering by a Hong Kong-listed company.

Globally, the deal ranks as the third-largest primary follow-on this year. Only Alphabet's $80 billion raise in June and Intel's $15 billion sale in August were bigger.

The full-stack category covers chips, infrastructure, and the development and deployment of AI models. Alibaba will face a 90-day lockup.