Alibaba falls after $10.2bn discounted AI share sale

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By Kane Wu, Samuel Shen and Casey Hall

Hong Kong/Shanghai — China’s Alibaba shares slumped in Hong Kong trade on Monday after it launched a $10.2bn share sale at a steep discount to fund its AI ambitions, with investors focused on stock dilution and execution risks.

AI has become Alibaba’s biggest driver of revenue growth at a time when e-commerce growth is stagnating, and its Qwen AI models are some of the most popular in China. Even so, some investors have reservations about how successful it will be.

“Alibaba’s DNA is in e-commerce, not advanced tech,” said Yang Tingwu, vice-GM of asset manager Tongheng Investment.

Alibaba falls after $10.2bn discounted AI share sale

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