Alibaba is really going to treat AI as a long-term battle this time
Alibaba suddenly plans to place 80 billion HKD worth of new shares, and it will take not a single cent to repurchase shares, pay dividends, or replenish cash flows
This time, Alibaba isn’t short of money—it’s that AI is burning money too fast
It plans to place approximately 710 million shares at a placement price of HK$112.70, raising HK$80 billion, with 100% of the proceeds going to full-stack AI and infrastructure. This is Alibaba’s first rights issue since its Hong Kong listing in 2019, and also one of the largest share offerings in Hong Kong stock history
In the financial report Alibaba just released, second-quarter net profit fell 75% year-on-year, but AI cloud and compute-power revenue grew 45% year-on-year to RMB 48.4 billion
So I think the real highlight this time isn’t dilution, but Alibaba betting on something: whether the extra money being burned now can turn into bigger AI cash flow in the future
This also means AI competition has moved beyond racing to build models, into a heavy-asset phase of competing on compute power, chips, data centers, and commercialization
Going forward, the market won’t just look at how much Alibaba invests—it will look at whether these HK$80 billion can turn AI spending into real revenue
If it works, Alibaba could see a reshuffling of valuation logic
If it doesn’t, burning money will become the biggest pressure
$BABAB 09988
Not investment advice. DYOR.
#阿里巴巴 #Alibaba
Alibaba suddenly plans to place 80 billion HKD worth of new shares, and it will take not a single cent to repurchase shares, pay dividends, or replenish cash flows
This time, Alibaba isn’t short of money—it’s that AI is burning money too fast
It plans to place approximately 710 million shares at a placement price of HK$112.70, raising HK$80 billion, with 100% of the proceeds going to full-stack AI and infrastructure. This is Alibaba’s first rights issue since its Hong Kong listing in 2019, and also one of the largest share offerings in Hong Kong stock history
In the financial report Alibaba just released, second-quarter net profit fell 75% year-on-year, but AI cloud and compute-power revenue grew 45% year-on-year to RMB 48.4 billion
So I think the real highlight this time isn’t dilution, but Alibaba betting on something: whether the extra money being burned now can turn into bigger AI cash flow in the future
This also means AI competition has moved beyond racing to build models, into a heavy-asset phase of competing on compute power, chips, data centers, and commercialization
Going forward, the market won’t just look at how much Alibaba invests—it will look at whether these HK$80 billion can turn AI spending into real revenue
If it works, Alibaba could see a reshuffling of valuation logic
If it doesn’t, burning money will become the biggest pressure
$BABAB 09988
Not investment advice. DYOR.
#阿里巴巴 #Alibaba
