Hong Kong-listed shares of Alibaba fell sharply on Monday after the Chinese e-commerce and cloud computing giant launched a $10.2 billion share placement to fund its artificial intelligence expansion, raising concerns among investors over the returns from its heavy AI spending, as per a Reuters report.
Alibaba said on Sunday that its HK$80 billion ($10.21 billion) share placement had been finalised at HK$112.70 per share, representing an 8.4% discount to Friday’s closing price. The company plans to use the proceeds to support AI-related development and infrastructure as it steps up investments amid intensifying competition and ongoing Sino-U.S. technology tensions.
