Alibaba Raises $10.2 Billion for AI, Then Ships a New Video Model
Alibaba raised $10.2 billion in Hong Kong’s largest-ever primary follow-on, put 100% of net proceeds into AI, and launched the Wan3.0 video model. Shares fell 8.1%.
TL;DR — Alibaba raised US$10.2 billion in the largest-ever primary follow-on share sale by a Hong Kong-listed company, earmarking 100% of net proceeds for AI, then launched its Wan3.0 video model — as shares fell 8.1% on the dilution and capex.
Alibaba just made one of the largest AI funding moves by any public company — and investors were not thrilled about paying for it.
The raise
Alibaba priced a HK$80 billion (US$10.2 billion) placement — 710 million new shares at HK$112.70, a 3.6% discount, representing about 3.7% of existing issued capital. It is the largest-ever primary follow-on by a Hong Kong-listed company and the world’s third-largest primary follow-on of 2026. Morgan Stanley, HSBC, UBS and CICC ran the books. 100% of net proceeds go to "full stack" AI — chips, infrastructure and model development.
The context is a company spending hard: quarterly capex rose 75% to 67.68 billion yuan and AI cloud revenue rose 45% to 48.44 billion yuan, while net profit fell 75% to 10.44 billion yuan.
| Wan2.7 | Wan3.0 | |
|---|---|---|
| Max clip | 15 seconds | 30 seconds |
| Resolution | — | up to 1080p |
| Native audio | — | Yes |
| Inputs | — | doc/xls/ppt/pdf/md, web pages |
The day after pricing, Alibaba launched Wan3.0. Shares fell 8.1% to HK$113.
What they said
"To be able to capture that future growth, we first need to make these capex investments to build out the necessary compute capacity." — Eddie Wu, CEO, Alibaba
Why it matters
- AI is now a balance-sheet event. A 75% profit drop alongside a record raise shows the real cost of competing.
- Dilution has a price. An 8.1% fall says shareholders are being asked to fund a long payback.
- Video is the battleground. Wan3.0 doubles clip length and adds native audio.
FAQ
How much did Alibaba raise, and what for?
HK$80 billion (US$10.2 billion) in a placement priced August 23, 2026 — the largest primary follow-on ever by a Hong Kong-listed company. Alibaba said 100% of net proceeds go to "full stack" AI: chips, infrastructure and model development.
What is new in Alibaba’s Wan3.0 video model?
Wan3.0 generates native 30-second clips at up to 1080p with audio — double the 15-second limit of Wan2.7 — and accepts documents, spreadsheets, presentations, PDFs, markdown and web pages as input. It launched August 24, 2026.
Sources
- Business Day — Alibaba launches $10.2bn share sale to fund AI expansion
- Proactive Investors — Alibaba launches Wan3.0 after record share sale
Image: Alibaba en logo by Alibaba Group Holding Limited — Public domain, via Wikimedia Commons.
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