Alibaba AI funding plans worth HK$80 billion, or about USD 10.2 billion, were followed by USD 15.3 million in share purchases by its chairman and CEO.
Alibaba Group Holding Limited (NYSE: BABA) announced the Hong Kong placement on Sunday, August 23. The company plans to use the proceeds for artificial intelligence development.
Seeking Alpha reported that Chairman Joseph Tsai bought 720,000 shares at an average price of USD 14.29. The purchase was worth about USD 10.3 million.
Chief Executive Officer Eddie Wu bought 350,000 shares at an average of USD 14.24, worth roughly USD 5 million.
TheStreet said Alibaba priced the offering at an 8.4% discount to its previous closing price. Hong Kong-listed shares fell 8.5% on August 24 and dropped as much as 10% intraday, according to figures cited in the source.
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The fundraising followed investor Michael Burry’s exit from Alibaba. Burry said on X that additional share issuance had changed his view of the stock.
Alibaba reported revenue of about USD 39.6 billion for the quarter ended June 30, 2026, up 9% year over year.
The company’s quarterly results also showed 45% growth in cloud revenue. Alibaba said AI-related product revenue grew triple digits for the 12th consecutive quarter. Alibaba Cloud’s adjusted EBITDA margin reached 12%, according to the company’s results.
