Alibaba Is Selling $10.2 Billion of Stock to Fund AI. Alphabet and Intel Went First.
The three biggest stock sales by already-public companies this year now share one purpose. Every one of them is paying for the AI build-out.
Overview
The three largest sales of new stock by already-public companies this year now share one purpose: funding artificial intelligence (AI).
Chinese e-commerce and cloud giant Alibaba (NYSE:BABA) priced an 80 billion Hong Kong dollar placement (about $10.2 billion) on Sunday, selling 710 million newly issued shares at 112.70 Hong Kong dollars each. The company says 100% of the net proceeds will go into its full-stack AI capabilities, including expanding its AI infrastructure. The deal is expected to close Wednesday.
Details
The market's reaction was quick. Alibaba's Hong Kong-listed shares fell 8.4% in Monday's session there, converging almost exactly on the placement price. The U.S.-listed shares held up better, trading about flat as of this writing after a drop in the premarket.
Source
Originally published at www.fool.com.
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