Alibaba is raising $10.2bn and spending all of it on AI

Alibaba will issue HK$80 billion of new shares in Hong Kong, directing 100% of net proceeds to its full-stack AI infrastructure. The move follows a 75% quarterly net-profit decline and a 75% increase in capex to ¥67.68 billion. Cloud and AI revenue rose 45% to ¥48.44 billion, with AI model services contributing over ¥16 billion in annual recurring revenue, and the firm is evaluating expanding its three-year AI investment pledge from ¥380 billion to ¥480 billion.