Alibaba raises $10.2bn in Hong Kong share sale

Saudi Minister Abdullah Alswaha met with executives from Ubisoft, Sony, Riot Games, Electronic Arts, Thales, Pasqal, and Advanced Machine Intelligence to discuss AI, gaming, and quantum computing partnerships. Alibaba (BABA) shares fell 10.5% after a $10.2B share sale at an 8.4% discount to fund AI investments, attracting $28B in orders. Alibaba's AI spending is a key growth driver amid stagnating e-commerce.

The Nasdaq 100 gained 3.2% in August, with semiconductors performing strongly. Nvidia is expected to report $93bn-$95bn in revenue. Among 13 AI stocks tracked, nine rose, with Palantir, Microsoft, and Intel as top performers. Baidu fell 8.0% due to AI spending losses. Nvidia made strategic moves in AI models and applications. Alibaba raised $10.2bn for AI investments, and Hugging Face is exploring a sale at $13bn+.

Alibaba plans to issue 710 million shares at HK$112.70 each, raising HK$80 billion to fund AI expansion. The shares represent 3.7% of current capital. AI Cloud and Compute Services revenue rose 45% YoY to RMB48.4 billion in Q2, with capital expenditure up 75%.

Alibaba priced a $10.2 billion stock sale to fund AI, the largest ever by a Hong Kong-listed company. Shares fell 8.4% in Hong Kong, while U.S. shares traded flat. Alphabet and Intel also raised funds for AI this year. Alibaba's cloud revenue grew 45% YoY, but net income fell 75% and free cash flow was negative.

Nvidia is reportedly in talks to invest in AI search startup Perplexity, valuing it at over $30B. Nvidia also committed $6B to AI startup Poolside. XPeng raised $900M for humanoid robot development. Alibaba launched Wan3.0, its latest generative AI video model, and announced an $80B share placement for AI infrastructure.

Alibaba (BABA) raised $10.2B via a HK share placement to fund AI investments, including computing infrastructure and AI model development. The offering, oversubscribed, will dilute shareholders. Alibaba's latest earnings showed a 75% drop in net profit and a 75% increase in capital expenditures, but AI Cloud and Compute Services revenue rose 45%.