Alibaba shares plunged as much as 10% in Hong Kong after the Chinese tech giant announced an $10.2 billion share placement to non-U.S. investors.

The company will issue 710 million new shares at HK$112.70 each and use all of the proceeds to expand its artificial intelligence infrastructure and capabilities.

The announcement came days after Alibaba reported a 75% drop in quarterly profit as heavy AI investments pushed capital spending up 75% to 67.7 billion yuan.

Alibaba has been increasing its AI and cloud investments as it seeks to make the technology a major source of future growth, including plans to invest at least 380 billion yuan over three years, CNBC has reported.

The company’s Chinese technology rivals, including Tencent, are also significantly increasing spending on computing infrastructure and AI development.