--- title: Alibaba is raising $10.2bn and spending all of it on AI description: Alibaba is raising HK$80bn (about $10.2bn) through a share placement in Hong Kong, with all net proceeds earmarked for AI infrastructure and full-stack AI... canonical: https://daily.dev/posts/alibaba-is-raising-10-2bn-and-spending-all-of-it-on-ai-ydbc1abpa twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Alibaba is raising $10.2bn and spending all of it on AI | daily.dev og:description: Alibaba is raising HK$80bn (about $10.2bn) through a share placement in Hong Kong, with all net proceeds earmarked for AI infrastructure and full-stack AI... og:url: https://daily.dev/posts/alibaba-is-raising-10-2bn-and-spending-all-of-it-on-ai-ydbc1abpa og:image: https://api.daily.dev/og/posts/YdBc1aBpA.png og:image:alt: Alibaba is raising $10.2bn and spending all of it on AI og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Alibaba is raising $10.2bn and spending all of it on AI **[The Next Web](https://daily.dev/sources/tnw)** · 3 min read · 1 upvotes · 1 comments ## Summary Alibaba is raising HK$80bn (about $10.2bn) through a share placement in Hong Kong, with all net proceeds earmarked for AI infrastructure and full-stack AI capabilities. The raise comes days after the company reported a 75% drop in quarterly net profit, driven by a 75% jump in capital expenditure to 67.68bn yuan. Cloud and AI revenue rose 45% to 48.44bn yuan, and AI model services now generate over 16bn yuan in annual recurring revenue. The offering is the largest primary follow-on ever by a Hong Kong-listed company and the largest Regulation S equity offering on record, ranking third globally this year behind Alphabet's $85bn raise and Intel. Alibaba is also expanding its European cloud footprint, including new availability zones in Paris, even as the EU's proposed Cloud and AI Development Act could restrict Chinese-headquartered providers from its stricter sovereignty tiers. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Questions this post answers ### How much money is Alibaba raising for AI infrastructure and where is it coming from Alibaba is raising HK$80bn, about $10.2bn, through a new share placement in Hong Kong. All net proceeds will go toward AI infrastructure and full-stack AI capabilities. It is the largest primary follow-on offering ever by a Hong Kong-listed company and the largest Regulation S equity offering on record, ranking third globally in 2026 behind Alphabet's $85bn raise and an Intel offering. _Investors weighing AI infrastructure bets follow raises like this one on daily.dev._ ### Why did Alibaba's profit drop while it keeps increasing AI spending Alibaba's quarterly net profit fell 75% while capital expenditure rose 75% to 67.68bn yuan in the April to June quarter, driven by AI infrastructure spending. Despite the profit hit, cloud and AI revenue grew 45% to 48.44bn yuan, and AI model services now generate over 16bn yuan in annual recurring revenue, which CEO Eddie Wu says justifies the upfront capex to build compute capacity for future growth. _Engineers tracking cloud provider investment cycles can follow AI capex trends on daily.dev._ ## Community discussion Top comments from developers on daily.dev. **@alwaisy** · 1 upvotes > fuck you alibaba. you are worst ## Similar posts on daily.dev - [Chinese profits rose 25.7%. The CSI 300 fell 9% and the Star 50 fell 29%](https://daily.dev/posts/chinese-profits-rose-25-7-the-csi-300-fell-9-and-the-star-50-fell-29--mli6gogwu) · The Next Web · 0 upvotes · 0 comments - [Alibaba Cloud lifts prices, blames AI and hardware costs](https://daily.dev/posts/alibaba-cloud-lifts-prices-blames-ai-and-hardware-costs-8jnwgjxhp) · The Register · 0 upvotes · 0 comments - [Alibaba Cloud opens first data centres in France](https://daily.dev/posts/alibaba-cloud-opens-first-data-centres-in-france-dvgpycy5r) · The Next Web · 0 upvotes · 0 comments --- Tags: [#cloud](https://daily.dev/tags/cloud), [#venture-capital](https://daily.dev/tags/venture-capital), [#ai-infrastructure](https://daily.dev/tags/ai-infrastructure), [#alibaba](https://daily.dev/tags/alibaba) [View this post on daily.dev](https://daily.dev/posts/alibaba-is-raising-10-2bn-and-spending-all-of-it-on-ai-ydbc1abpa) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"Alibaba is raising $10.2bn and spending all of it on AI","url":"https://daily.dev/posts/alibaba-is-raising-10-2bn-and-spending-all-of-it-on-ai-ydbc1abpa","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/alibaba-is-raising-10-2bn-and-spending-all-of-it-on-ai-ydbc1abpa"},"datePublished":"2026-08-23T09:07:58.539Z","dateModified":"2026-09-14T06:31:30.014Z","description":"Alibaba is raising HK$80bn (about $10.2bn) through a share placement in Hong Kong, with all net proceeds earmarked for AI infrastructure and full-stack AI...","image":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/7f82901dfe41ea4f9d223d0301b198ba?_a=AQAEuop","thumbnailUrl":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/7f82901dfe41ea4f9d223d0301b198ba?_a=AQAEuop","isAccessibleForFree":true,"articleSection":"The Next Web","inLanguage":"en","publisher":{"@type":"Organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180}},"author":{"@type":"Organization","name":"The Next Web","logo":"https://media.daily.dev/image/upload/t_logo,f_auto/v1/logos/tnw","url":"https://daily.dev/sources/tnw"},"commentCount":1,"discussionUrl":"https://daily.dev/posts/alibaba-is-raising-10-2bn-and-spending-all-of-it-on-ai-ydbc1abpa","interactionStatistic":[{"@type":"InteractionCounter","interactionType":{"@type":"LikeAction"},"userInteractionCount":1},{"@type":"InteractionCounter","interactionType":{"@type":"CommentAction"},"userInteractionCount":1}],"keywords":"cloud,venture-capital,ai-infrastructure,alibaba","timeRequired":"PT3M"} {"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://daily.dev"},{"@type":"ListItem","position":2,"name":"The Next Web","item":"https://daily.dev/sources/tnw"},{"@type":"ListItem","position":3,"name":"Alibaba is raising $10.2bn and spending all of it on AI"}]} {"@context":"https://schema.org","@type":"WebPage","@id":"https://daily.dev/posts/alibaba-is-raising-10-2bn-and-spending-all-of-it-on-ai-ydbc1abpa","comment":[{"@type":"Comment","text":"fuck you alibaba. you are worst","datePublished":"2026-08-23T10:03:01.780Z","url":"https://daily.dev/posts/YdBc1aBpA#c-ERLTibgHa","author":{"@type":"Person","name":"Awais Alwaisy","url":"https://daily.dev/alwaisy","image":"https://avatars.githubusercontent.com/u/102944304?v=4"},"interactionStatistic":{"@type":"InteractionCounter","interactionType":{"@type":"LikeAction"},"userInteractionCount":1}}]} {"@context":"https://schema.org","@type":"FAQPage","@id":"https://daily.dev/posts/alibaba-is-raising-10-2bn-and-spending-all-of-it-on-ai-ydbc1abpa#faq","mainEntity":[{"@type":"Question","name":"How much money is Alibaba raising for AI infrastructure and where is it coming from","acceptedAnswer":{"@type":"Answer","text":"Alibaba is raising HK$80bn, about $10.2bn, through a new share placement in Hong Kong. All net proceeds will go toward AI infrastructure and full-stack AI capabilities. It is the largest primary follow-on offering ever by a Hong Kong-listed company and the largest Regulation S equity offering on record, ranking third globally in 2026 behind Alphabet's $85bn raise and an Intel offering. Investors weighing AI infrastructure bets follow raises like this one on daily.dev."}},{"@type":"Question","name":"Why did Alibaba's profit drop while it keeps increasing AI spending","acceptedAnswer":{"@type":"Answer","text":"Alibaba's quarterly net profit fell 75% while capital expenditure rose 75% to 67.68bn yuan in the April to June quarter, driven by AI infrastructure spending. Despite the profit hit, cloud and AI revenue grew 45% to 48.44bn yuan, and AI model services now generate over 16bn yuan in annual recurring revenue, which CEO Eddie Wu says justifies the upfront capex to build compute capacity for future growth. Engineers tracking cloud provider investment cycles can follow AI capex trends on daily.dev."}}]} ```