#AlibabaAIDilution

#AlibabaAIDilution Alibaba isn't just betting on AI. It's asking shareholders to help fund it. Raising HKD80B gives the company serious firepower without adding more debt, but roughly 3.6% dilution means AI now has to earn its keep. Revenue growth of 45% sounds great until you pair it with surging capex and falling profit. If AI cash flow catches up, this financing could look smart. If not, shareholders funded an expensive race. The next test is returns, not spending.

ASIAN EQUITIES ARE TRADING UNDER PRESSURE AS THE AI AND SEMICONDUCTOR SELLOFF CONTINUES TO WEIGH ON REGIONAL MARKETS, WITH SOUTH KOREA PARTICULARLY WEAK DUE TO ITS HEAVY CHIP EXPOSURE, WHILE HONG KONG AND MAINLAND CHINESE STOCKS ARE PRESSURED BY ALIBABA'S HK$80 BLN SHARE SALE, WHICH HAS RAISED CONCERNS OVER THE SCALE OF AI SPENDING AND POTENTIAL DILUTION.

$TAO #Anthropic plans to publicly file IPO documents by the end of August, fundraising may match SpaceX Currently solidifying its position as the leader in decentralized AI, it has risen along with Bitcoin's recent surge, but whether future actual revenue can offset token release remains an important issue. AI narrative and capital refocus: As traditional tech markets and the crypto community renew their interest in AI computing power #BTC77KFlowTest #Gold4600VsBonds #SamsungPayoutUpTo80B

Anthropic's bankers are telling potential investors that it may raise over $100 billion in its initial public offering at a valuation of $2 trillion, exceeding SpaceX and making it the largest IPO of all time.

UBS now models the AI infrastructure buildout reaching ~$4.1T of hyperscaler capex from 2026-2028 which is more than 3x what was spent over the previous six years combined: Cumulative 3-year capex: • $GOOGL ~$938B • $META ~$683B • $MSFT ~$672B • $AMZN ~$628B • $SPCX ~$335B • $ORCL ~$276B • $CRWV ~$130B • $NBIS ~$93B That scale shows how the largest cloud platforms are going all-in on building the new AI economy as Amazon, Google and Microsoft are expected to spend ~102% of cloud revenue on capex in 2026 followed by ~99% in 2027 and ~94% in 2028 effectively reinvesting nearly every dollar of cloud revenue back into infrastructure for three straight years. And while the growth rate slows after 2026, the spending itself keeps climbing to a record ~$1.6T by 2028 as SpaceX and the neoclouds add entirely new pools of demand which is what makes this more than another capex cycle since AI infrastructure is resetting the industry's long-term spending base several times higher.

Alibaba Stock Falls As AI Push Drives $10 Billion Share Sale

Alibaba $BABA plans a $10.2B share sale offering 710M shares at a 3.6% discount to fund its full-stack AI expansion! KEY HIGHLIGHTS: Offering 710M shares at a discount to accelerate AI infrastructure development Backing its expansion with $153.9B in total revenue and $14.6B in EBITDA Massive operational scale counterbalanced by a modest 7% net margin THE RATING: Modest net margin metrics balance against massive AI scale, keeping the Seeking Alpha Quant score for $BABA at a HOLD.

🚨 ALIBABA DROPS 10% 📉 🇨🇳 Alibaba shares plunged 10% in Hong Kong after the company announced a $10.2B discounted share offering. The capital will fuel its AI expansion, but aggressive AI spending has already sent quarterly profits down 75% YoY. #AlibabaAIDilution #DailyOrbit

Breakingviews - Alibaba's $10 bln share sale starts AI countdown