# Alibaba Shares Plunge 10% After $10.2 Billion Share Placement to Fund AI Push

*2026-08-26 14:02 UTC · Business · 1 min read*

> Alibaba shares dropped as much as 10% in Hong Kong after the company unveiled a $10.2 billion share placement to fund its AI infrastructure buildout.

Alibaba shares fell as much as 10% in Hong Kong trading on Monday after the Chinese tech giant announced an HK$80 billion ($10.2 billion) placement of new shares to fund its artificial intelligence expansion. The company will issue 710 million new shares at HK$112.70 apiece, an 8.4% discount to Friday's closing price.

Alibaba said all proceeds will strengthen its full-stack AI capabilities, including data-center infrastructure. The company has already pledged 380 billion yuan ($56.5 billion) over three years to AI infrastructure, expanding to 104 availability zones across 30 regions, and says surging demand has pulled its AI investment payback timeline forward from three years to two and a half.

The placement follows a 75% year-over-year drop in net profit for the June quarter, driven largely by AI-related spending. "It's negative news in the short-term ... as the share placement dilutes shareholders' interest. In addition, investors generally don't like capex," said Charles Wang of Shenzhen Dragon Pacific Capital Management.

## Sources

- [cnbc.com](https://www.cnbc.com/2026/08/24/alibaba-share-placement-drop-ai-hong-kong.html)
- [investing.com](https://www.investing.com/news/stock-market-news/alibaba-stock-slumps-in-hong-kong-after-102-billion-share-placement-to-fund-ai-4872593)

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TechTools News · https://techtools.cz/tools/news/article/2258-alibaba-shares-plunge-10-after-10-2-billion-share-placement-to-fund-ai-push
Česká verze: https://techtools.cz/tools/news/clanek/2331-akcie-alibaby-po-oznameni-umisteni-akcii-za-10-2-miliardy-dolaru-na-ai-padly-o