Alibaba sells its Lingxi games arm to fund an all-in bet on AI

Alibaba is selling its profitable gaming subsidiary Lingxi Games to private equity firm Trustar Capital to focus on its AI ambitions, particularly its Qwen AI models and data centers. The deal's value is disputed between $1.5 billion and $2 billion. CEO Eddie Wu is restructuring Alibaba around AI and cloud computing, aiming for $100 billion in AI revenue over five years.