Alibaba Sells Gaming Studio Lingxi for $1.5B to Fuel AI Development
Photo: Tom's Hardware
Quick answer
Alibaba sells gaming studio Lingxi for $1.5–2 billion to fund AI and cloud infrastructure expansion.
Chinese tech giant Alibaba is finalizing the sale of its gaming studio Lingxi to Trustar Capital, an Asian private investment fund. According to sources, the deal is valued at no less than $1.5 billion, potentially exceeding $2 billion. Lingxi, the developer behind the hit mobile strategy game *Three Kingdoms: Strategy Edition*, will fully transition to new ownership.
Lingxi’s management team, including CEO Zhou Bingshu, will retain their positions post-acquisition. An internal memo to employees, reported by Bloomberg, confirmed that the sale aligns with Alibaba’s strategic priorities, including AI and cloud technology development. The company has already pledged to exceed its previously announced $53 billion budget for these sectors.
Alibaba is actively optimizing its business portfolio to free up resources for AI. Earlier in 2024, the company sold stakes in retail chains Sun Art and Intime for $2.6 billion. Additionally, its chip development unit T-Head, which designs accelerators for cloud solutions, is preparing for an IPO. These moves reflect Alibaba’s strategy to strengthen its position in high-tech segments.
Common questions
- Why is Alibaba selling Lingxi?
- The company aims to prioritize AI and cloud technology development, requiring significant investments. Selling Lingxi frees up capital for these initiatives.
- Who is buying Lingxi?
- The buyer is Trustar Capital, an Asian private investment fund that will gain full control over the studio.
- What are Alibaba’s AI plans?
- The company plans to invest over $53 billion in AI and cloud technologies, targeting $100 billion in AI-driven revenue within five years.
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