Alibaba shares tumble as investors question whether AI spending splurge is justified

The market’s negative reaction to Alibaba’s announcement of a major share issue illustrates a broader skepticism among global investors about the eventual payback on present AI spending

TechnologyMove comes amid intensifying race to build frontier models and computing infrastructureAlibaba is doubling down on artificial intelligence at a moment when the race to build frontier models and the infrastructure behind them is intensifying across both China and the West. © ReutersCISSY ZHOUAugust 23, 2026 17

A deal by the Chinese e-commerce and cloud computing giant would mark the largest-ever primary follow-on offering by a Hong Kong-listed company.

Alibaba launches $10 billion Hong Kong share placement to fund AI spending  Reuters

Alibaba Group Holding will issue HK$80 billion (US$10.2 billion) worth of new shares and use all of the proceeds to invest in AI, the Chinese tech giant said on Sunday. The move aims to “extend the company’s global AI leadership”, it said, adding that Alibaba would use the funds raised to “invest in its full-stack AI c