Alibaba shares dropped nearly 10% after announcing a $10.2 billion share sale at an 8.4% discount, raising concerns over shareholder dilution and risks tied to its AI investments.

The Chinese tech giant is expanding beyond retail into chips, cloud and large language models as surging spending weighs on quarterly profits.

The Chinese tech giant announced it will issue HK$80 billion in new shares to fully fund its global AI push.

Alibaba aims to raise $10 billion through a share sale to enhance its artificial intelligence capabilities and compete globally.