Alibaba Group raised about $10.2 billion through a Hong Kong primary placement of 710 million new shares at HK$112.70 to fund full-stack AI infrastructure within a roughly RMB380 billion three-year plan, after June-quarter profit fell 75% and free cash flow turned deeply negative on surging AI capital expenditure. Hong Kong-listed shares fell more than 8% and closed sharply lower after the announcement, while U.S. ADRs dropped further in Monday premarket trading. Early monetization includes AI model-as-a-service revenue above RMB16 billion and the Wan3.0 video model launch, and the deal was heavily oversubscribed by institutions including sovereign wealth funds. Market reaction has polarized Wall Street: some investors and commentators called the equity raise a dilution-driven signal of cash-engine strain amid competition with PDD and Tencent, with Hedgeye’s Felix Wang exiting a long and Michael Burry favoring JD.com, while Bank of America kept a Buy rating with a $172 target and other bulls defended the raise against earlier buybacks.