Alibaba Group Holding has agreed to sell gaming unit Lingxi Games to Asian private equity firm Trustar Capital in a deal valuing the business at at least $1.5 billion, adding to CEO Eddie Wu's effort to shed non-core assets and redirect capital toward artificial intelligence and cloud computing. Lingxi CEO Zhou Bingshu told employees the sale would allow Alibaba to focus more tightly on its strategic priorities. The transaction follows other portfolio moves, including the January 2025 sale of Alibaba's controlling stake in Sun Art Retail Group to DCP Capital for about $1.6 billion. Alibaba has said it wants to reach $100 billion in AI and cloud-related revenue within five years, and the latest report describes that ambition as a $100 billion AI revenue goal. This month the company released its largest AI model to date and said its performance could rival Anthropic, underscoring how asset sales are being tied to a broader AI push.