Alibaba’s Hong Kong-listed shares plummeted nearly 10% after the company announced a record HK$80 billion (US$10.2 billion) share placement, the largest fundraising in its history. Net profit dropped 75% year-over-year in the second quarter to RMB10.5 billion, as capital expenditures surged 75% to RMB67.68 billion (US$10 billion), almost entirely driven by AI infrastructure. The company reported negative free cash flow of US$6.6 billion for the quarter. Alibaba has committed to a three-year investment plan totaling approximately US$56.5 billion in AI capabilities, with early signs of returns as AI model-as-a-service revenue surpassed RMB16 billion.
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