
#AlibabaAIDilution
About AlibabaAIDilution
Alibaba will place 710M shares to raise HKD80B to fully fund full-stack AI infrastructure. They equal about 3.6% of enlarged capital. Last quarter, AI cloud and compute revenue rose 45%, while capex grew 75% and net profit fell about 75%. Equity financing avoids more debt costs but dilutes existing holders. Is Alibaba locking in AI funding at a favorable time, or signaling operating cash flow cannot cover the buildout? Can AI revenue turn into profit and cash fast enough to offset dilution?
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