Alibaba Goes Big on AI With $3.2 Billion Convertible Bond. The Stock Is Rising.

Alibaba said Thursday that it would raise $3.2 billion by issuing a convertible bond, in order to strengthen its cloud infrastructure capabilities. (Dreamstime)

Alibaba stock was rising on Thursday after the Chinese e-commerce giant said it would seek to raise $3.2 billion by issuing a convertible bond, yet another indication that it’s doubling down on artificial intelligence.

Alibaba’s American depositary receipts were up 4.6% to $150.60 shortly after the U.S. opening bell. The S&P 500 was 0.6% higher.

The move came after Alibaba said it would offer $3.2 billion worth of zero-coupon convertible notes, due 2032. The company added that it plans to use the money raised to strengthen its cloud infrastructure capabilities and international commerce business.

It’s the latest sign that the online retailer is living up to its “all-in AI” strategy. Alibaba unveiled a new large-language model last week, just days after a quarterly earnings report showed its AI revenue had doubled over the past year.

The company’s ADRs have surged 78% this year. The S&P 500 is up 11.7% over the same period.

Write to George Glover at george.glover@dowjones.com