Alibaba completed the pricing of a new share issue worth 80 billion HKD (about 10.2 billion USD) on August 24, with the net proceeds to be fully invested in full-stack AI capabilities and infrastructure. According to sources close to the transaction, the placement was over-subscribed nearly three times, with more than 200 billion HKD in subscriptions. The final subscription ratio from sovereign and long-term funds exceeded 40%, with major sovereign funds in the Middle East, Europe, and Asia actively participating.

Management personally invested 120 million HKD

According to information from the Hong Kong Stock Exchange, after the placement, the group's chairman,蔡崇信, and CEO,吴泳铭, collectively increased their holdings of Alibaba shares by approximately 120 million HKD, casting a vote of confidence in the AI strategy. 蔡崇信 purchased 720,000 shares at an average price of about 112 HKD, spending 80 million HKD, while 吴泳铭 purchased 350,000 shares at an average price of about 111.6 HKD, spending 40 million HKD. Together, they increased their holdings by 1,070,000 shares.

Global long-term capital has shown enthusiasm due to clear return paths from Alibaba's AI investments. The latest financial report shows that revenue from AI-related products has exceeded 49.5 billion RMB annually, and is expected to reach 10 billion USD in the next quarter. It is projected that Alibaba Cloud's external revenue will reach 100 billion USD by 2030, with a profit margin of 20%. Management stated that AI capital expenditures can be recouped within 2 to 3 years. Combined with the repurchase and cancellation of approximately 11% of shares in recent years, which enhances shareholder returns, Alibaba's full-stack layout is expanding from computing power and chips to models and applications.