Alibaba Group Holding Ltd. is seeking to raise approximately HK$80 billion ($10 billion) through a share sale. This move is part of the company's effort to compete for global leadership in the rapidly growing artificial intelligence sector.
The tech giant has been spending heavily on technology as it jostles with rivals for dominance. If completed, the offering would rank as the world's third-largest primary follow-on share sale this year, following offerings from Alphabet and Intel.
However, Alibaba shares plunged 10% after the company priced a $10.2 billion share placement to fund its growing AI investments. The decline comes as investors express worry about the payback from the company's massive artificial intelligence spending.