Alibaba has agreed to sell its game development unit, Lingxi Games, to Asian private equity firm Trustar Capital, according to an internal staff memo sent Monday by Lingxi CEO Zhou Bingshu, per Reuters. A person familiar with the matter told Reuters that Alibaba stands to collect more than $2 billion from the transaction, while Bloomberg, which first reported the memo, valued the studio at no less than $1.5 billion. The sale transfers Alibaba's entire stake in the studio and takes the Chinese tech giant out of in-house game development entirely, freeing up cash for an AI infrastructure program the company has already said will blow past its original $53 billion budget.
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