Chinese Giant Alibaba Shares Slide As Heavy AI Spending Hits Profits

Alibaba shares fell sharply Monday after the Chinese technology giant announced an $10.2 billion stock placement aimed at funding its artificial intelligence expansion.

According to the report, Alibaba will issue 710 million new shares to non-U.S. investors at HK$112.70 each. The offering represents a discount to Friday’s closing price and sent Hong Kong-listed shares down as much as 10%.

Alibaba has been aggressively increasing AI investment as it seeks to make the technology a major source of future growth. The company previously committed at least 380 billion yuan over three years toward cloud computing and AI infrastructure.

CNBC reported that analysts see Alibaba as well positioned for AI growth, although higher capital spending could pressure profits in the near term. Chinese rival Tencent is also sharply increasing AI-related spending.

Related Tweet:

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… pic.twitter.com/SWlqHqB0Zo

— CNBC (@CNBC) August 24, 2026

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