Night view of Alibaba’s headquarters building located by the Huangpu River in Shanghai, China on Nov. 16, 2025.
CFOTO | Future Publishing | Getty Images
Alibaba shares plunged as much as 10% in Hong Kong on Monday after the Chinese tech giant priced an 80 billion Hong Kong dollar ($10.20 billion) placement of newly issued shares to non-U.S. investors.
The company said it plans to use all of the net proceeds to invest in its full-stack AI capabilities, including expanding and enhancing its AI infrastructure.
Alibaba will issue 710 million new shares at HK$112.70 apiece, compared with the stock’s Friday closing price of HK$123. Shares were last trading 8.4% lower at HK$112.7.
The share placement, expected to close on Wednesday, comes just days after Alibaba reported a 75% drop in profit for the June-quarter as heavy AI spending weighed on its results. Capital expenditure jumped 75% to…
