TECH Signal 402
Alibaba reportedly sells Lingxi Games stake for at least $1.5 billion, exiting in-house game development
↗
Alibaba agreed to sell its Lingxi Games studio to Trustar Capital, transferring its entire ownership and earmarking the proceeds for its AI infrastructure expansion.
The proceeds bolster Alibaba's multi-billion-dollar AI data-center buildout, potentially increasing demand for AI-focused hardware and software stacks. By exiting game development, Alibaba will shift engineering resources away from proprietary gaming tools toward cloud AI services.
Written by elseif from the cluster below · every claim links back to a sourceThe three things worth knowing
The transaction is valued at no less than $1.5 billion, with some sources indicating Alibaba will collect over $2 billion.
All of Alibaba's equity in Lingxi Games is transferred to Trustar Capital, ending its internal game-development operations.
Funds from the sale are directed to Alibaba's AI infrastructure program, which has already surpassed its original $53 billion budget.
THE CLUSTER