Alibaba Drops 2% Premarket After $10.2 Billion Share Sale Funds AI
Updated
Updated · CNBC · Aug 24
Alibaba Drops 2% Premarket After $10.2 Billion Share Sale Funds AI
3 articles · Updated · CNBC · Aug 24
Summary
Alibaba’s U.S.-listed shares fell 2% before the bell after the company said it would issue $10.2 billion of new shares to non-U.S. investors.
All proceeds are earmarked for AI projects, especially infrastructure, extending Alibaba’s push to build out full-stack artificial intelligence capacity.
The sale follows a Hong Kong placement of 710 million shares at HK$112.7 each, which had already sent Alibaba’s local stock sharply lower earlier Monday.
The fundraising underscores how aggressively Alibaba is spending on AI even as investors weigh dilution and pressure on near-term profits.