Alibaba Group Holding will issue HK$80 billion worth of new shares and use the entire proceeds to invest in AI, the Chinese tech giant said on Sunday.The move aims to “extend the company’s global AI leadership”, according to the company. It will use the funds raised to “invest in its full stack AI capabilities”, including expanding and enhancing its AI infrastructure, Alibaba said.Last week, Alibaba announced a 45 per cent of year-over-year jump in its June-quarter revenue in cloud and AI businesses, with capital expenditure expanding 75 per cent from a year earlier to 67.7 billion yuan.Alibaba expected its AI computing investments to break even within three years, with the potential to shorten to about two years as gross margins continued to rise, Alibaba Group CEO Eddie Wu Yongming said in an earnings call on Thursday.The Chinese e-commerce and AI giant will also use the new proceeds to boost AI innovation, according to a person familiar with the deal. The deal marks one of the biggest AI dedicated financing cases in China.During the Thursday earnings call, Wu added that the company had already spent 190 billion yuan in capex as of the end of June. Last year, Alibaba announced a commitment of 380 billion yuan in AI investment from 2026 to 2029.