Alibaba plans to issue $10 billion in shares to finance its AI plan
The Chinese tech giant is known for its open-source AI models, "Qwen," which have gained popularity among developers around the world.
An outdoor advertisement for Alibaba in Hong Kong (File photo)
The Chinese tech giant Alibaba announced Sunday that it plans to issue 80,000 million Hong Kong dollars (about 10.2 billion U.S. dollars) in new shares to finance its global ambitions in artificial intelligence.
Alibaba has already invested tens of billions of dollars in AI, and its shareholders are eager to see how these massive investments will translate into concrete financial returns, according to AFP.
"The capital increase is intended to strengthen the company's global leadership in AI," Alibaba stated in a press release cited by the agency
The company plans to use all of the net proceeds from the offering to invest in its "comprehensive AI capabilities, primarily to expand and enhance its AI infrastructure," it added.
On Thursday, Alibaba reported revenue of nearly 269 billion yuan ($40 billion U.S. dollars) for its latest quarter, a 9% year-over-year increase, driven by the global boom in artificial intelligence that is fueling demand for its products.
The Chinese giant is known for its open-source "Qwen" AI models, which have gained popularity among developers worldwide.
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