What is Alibaba's plan for the $3.17 billion it is raising?

Alibaba plans to use the funds raised from the convertible notes offering to scale up its data centers, upgrade its technology, and expand its international commerce operations.

How is the Chinese tech sector responding to the AI race?

Chinese tech giants like Alibaba, Baidu, Tencent, and Meituan are all raising billions of dollars to invest in AI infrastructure, cloud computing, and other emerging technologies as they compete fiercely for market share.

Home / Business and Economy / Alibaba Raises $3.17 Billion in Convertible Notes Offering

Alibaba Raises $3.17 Billion in Convertible Notes Offering

Q: What is the global context of the AI race mentioned in the article?

The article notes that the fundraising spree among Chinese tech firms is part of a broader global race for AI supremacy, with companies like Nvidia, TSMC, Oracle, and Broadcom also making major investments and securing lucrative deals in the space.

11 Sep

•

Summary

Alibaba seeking to raise $3.17 billion in convertible notes offering
Chinese tech giants racing to invest billions in AI and cloud computing
Alibaba plans to use funds for data centers, tech upgrades, and international expansion

Alibaba Raises $3.17 Billion in Convertible Notes Offering

As of September 11th, 2025, Alibaba Group Holding Ltd. is at the forefront of a major fundraising push among Chinese tech giants. The company is seeking to raise $3.17 billion through an offering of zero-coupon convertible notes, which will be the largest such deal this year.

The convertible notes, due in 2032, will be exchangeable for Alibaba's American depositary receipts. Investors have already placed enough orders to cover the entire offering, according to people familiar with the matter.

The massive capital-raising efforts by Chinese tech firms like Alibaba, Baidu, Tencent, and Meituan reflect the intense competition in the sector, particularly in the areas of artificial intelligence, cloud computing, and even food delivery. Alibaba plans to use the funds to scale up its data centers, upgrade its technology, and expand its international commerce operations.

Earlier this year, Alibaba announced it would spend $53 billion over three years on AI infrastructure, including data centers, in a bid to become a leader in the field. The company is locked in fierce competition for Chinese consumers against rivals like Meituan and JD.com, and has committed an additional 1 billion yuan in incentives to drive more traffic to its popular online services.

The fundraising spree among Chinese tech giants underscores the global race for AI supremacy, with companies like Nvidia, TSMC, Oracle, and Broadcom also making major investments and securing lucrative deals in the space.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.