Chinese technology group Alibaba Holding plans to raise around US$10 billion, equivalent to HK$80 billion, through a new share offering on the Hong Kong Stock Exchange, in a strategic move aimed at strengthening its infrastructure and global competitiveness in artificial intelligence.

Bloomberg reported that the company will offer 710 million shares at HK$112.7 each, representing a 3.6 percent discount to last Friday’s closing price.

The offering comes as Alibaba raises its quarterly capital expenditure to around $10 billion.

Proceeds from the share sale will be used to invest in integrated artificial intelligence capabilities as the company seeks to maintain its leadership and position in the highly competitive sector.