Alibaba to Raise $3.2B for Cloud & Global Expansion

Alibaba Group has announced plans to raise US$3.2 billion through a zero-coupon convertible note offering to strengthen its cloud infrastructure and international business expansion.

Around 80 percent of the funds will be directed toward increasing data center capacity, upgrading core technologies, and enhancing cloud services to meet growing demand. The remaining 20 percent will support Alibaba’s global e-commerce operations, improving efficiency and reach. This fundraising move aligns with Alibaba’s broader US$53 billion commitment to AI and cloud infrastructure over the next three years, announced in February 2025. The convertible note issue represents about 6 percent of this total investment, highlighting a systematic capital deployment strategy rather than opportunistic fundraising.

Key Highlights

• Alibaba to raise $3.2B to expand cloud and data centers
• 80 percent of funds will go to cloud infrastructure, 20 percent to global e-commerce
• Cloud revenue up 26 percent YoY; AI revenue grows triple digits for 8 quarters

Alibaba’s cloud revenue grew 26 percent year-over-year to $4.7 billion, with AI-related revenue achieving triple-digit growth for eight consecutive quarters.

The company is expanding computational capacity through new data centers in Mexico and Thailand, reinforcing its global footprint. With a 35.8 percent market share in China’s AI cloud segment—well ahead of ByteDance (14.8 percent) and Huawei (13.1 percent)—Alibaba is positioned to capture the majority of future market growth.

Also Read: Alibaba-Backed Banma Plans Hong Kong Stock Listing

China’s AI cloud services market is projected to reach $7.3 billion by 2025, growing at a 26.8 percent CAGR through 2030, providing Alibaba a strong runway for revenue expansion.