Alibaba launches Wan3.0 AI video model after record $10 billion share sale

Alibaba Group (NYSE:BABA), the Chinese technology giant, officially rolled out its latest artificial intelligence (AI) video generation model, Wan3.0, on Monday.

The new software can generate 30-second videos directly from text documents, data spreadsheets, presentation slides, and web pages.

Alibaba Cloud, the company's cloud computing division, said the model has supported short film production, commercial advertising, tourism marketing, and music videos since launching in public beta on August 6.

The rollout comes after the group launched a $10 billion share placement to fund rising capital expenditure in the global artificial intelligence race.

The transaction represents the largest-ever primary follow-on equity offering conducted by a company listed in Hong Kong.

Alibaba recently reported a 75% plunge in quarterly net profit to 10.44 billion yuan as capital spending jumped 75% to 67.68 billion yuan.

Alibaba shares fell 8.1% to HK$113 in Hong Kong trading on Monday after the group priced 710 million new shares at an 8.4% discount.

The new shares represent approximately 3.7% of existing issued capital, with completion of the equity sale scheduled for August 26.

The company will direct all net proceeds toward upgrading infrastructure for its Qwen models and expanding full-stack AI computing capabilities.

Management is betting that strong enterprise demand will justify mounting infrastructure costs, supported by a 45% increase in AI cloud revenue to 48.44 billion yuan.