Alibaba Group has issued an HK$80 billion (US$10.21bn) equity placement.

Set to close on August 26, the equity placement includes 710 million shares, priced at HK$112.70 each (US$14.38).

The company intends to use the funding to further its "global AI leadership" and will invest in its "full-stack AI capabilities," including expanding its AI infrastructure.

No specific locations have been named.

Shares are only available to non-US persons and are not being registered in the US.

Following the company's announcement of the sale, share values dropped some ten percent in Hong Kong. This is on top of a significant dip after the company published its quarterly earnings results on August 20.

During Q2 2026, Alibaba saw a strong performance in terms of its AI and cloud revenue, but its capex was up 75 percent Year-on-Year, and as a result the company saw net profit fall 75 percent and operating margins drop 14 percent.

This was put down to "continued investments in AI infrastructure to meet strong and growing customer demand," as well as fluctuations in procurement cycles, with executives suggesting that future quarters would not be as high.

The company has long been expanding its footprint to meet growing AI demands, including outside of China. The company claims to operate the largest number of data centers across any Asian cloud provider, and has regularly launched new locations, including, in recent months, data centers in South Korea, Japan, France, and Malaysia.