Alibaba's Hong Kong shares fell as much as 10% on Monday after the company completed a HK$80 billion ($10.2 billion) share placement at HK$112.70 per share, an 8.4% discount to the previous close. The placement is the largest primary follow‑on offering by a Hong Kong‑listed company and the third‑largest globally this year. Alibaba said the funds will support AI development and infrastructure as part of a three‑year pledge to invest 380 billion yuan ($56.5 billion) in AI. The deal diluted existing shareholders and led to short‑term concerns about earnings pressure. Charles Wang, chairman of Shenzhen Dragon Pacific Capital Management, said the placement was negative news in the short term because it reduced shareholders' interest, though he added that the investment could be beneficial in the long term. U.S. investors have also voiced skepticism about when AI spending will generate returns. Alibaba reported a 75% decline in quarterly net profit, primarily driven by AI‑related expenditures, and accelerated its expected payback period for AI investments from three to two and a half years. The company launched its third data centre in South Korea last week, expanding its network to 104 availability zones across 30 regions. Alibaba intends to use the proceeds to expand its AI infrastructure. The timeline for achieving profitability from the spending remains uncertain.