Alibaba sells gaming studio for $1.5B+ to help fund AI buildout

Alibaba agreed to sell its game development unit, Lingxi Games, to private equity firm Trustar Capital for at least $1.5 billion, according to an internal staff memo. The move mirrors Micron's earlier exit from its consumer business to redirect capital.

Why it matters: It's a concrete sign of how much capital Chinese tech giants are reallocating toward AI infrastructure — enough to justify selling a previously significant, non-core business line. Watch for more of China's conglomerates shedding legacy consumer units as domestic AI capex intensifies alongside releases like Alibaba's own Qwen models.