Michael Burry has exited Alibaba Group Holding Ltd. and built a large stake in rival JD.com Inc., saying he no longer plans to reverse the swap after Alibaba priced a roughly HK$80 billion ($10.2 billion) share sale to fund artificial-intelligence investment. Writing that he cannot support the issuance, Burry said return on invested capital is likely to keep falling as the company pours capital into AI and that the shares would need to drop by about half before he would reconsider. Alibaba priced about 710 million new shares at HK$112.70, an 8.4% discount to Friday’s close, in what was described as the largest-ever primary follow-on offering by a Hong Kong-listed company, with the deal expected to close on August 26 and lift the share count by about 3.7%. Hong Kong-listed Alibaba shares fell 9.67% to HK$111.10, their lowest level since July 30, while JD.com slipped 2.08% to HK$112.80. Burry remains constructive on easing “Delivery Wars” competition that he expects to lift margins for JD.com and Meituan, even as Alibaba’s June-quarter profit fell about 75% amid surging AI infrastructure spending.