Chinese tech giant, Alibaba has announced plans to issue about $10.2 billion in new shares in Hong Kong to fund its global artificial intelligence ambitions.

The company said the equity placement is aimed at extending its leadership in the AI sector.

Alibaba, which is based in Hangzhou, has already invested tens of billions of dollars in artificial intelligence. Shareholders have been keen to see how the firm will turn these large investments into profitable returns.

In a statement, the company said all the net proceeds from the share sale would be used to invest in its full-stack AI capabilities. This includes expanding and enhancing its AI infrastructure around the world.

The move comes after Alibaba reported nearly 269 billion yuan, or about $40 billion, in revenue for its most recent quarter. The figure marked a nine per cent increase from the previous year and was boosted by strong global demand for AI-related products and services.

The firm is also known for its open-source Qwen AI models, which have gained popularity among developers worldwide. The planned share sale is expected to strengthen Alibaba’s position as it competes in the fast-growing artificial intelligence market.