The Chinese technology giant Alibaba plans to sell its gaming studio, Lingxi Games, to the private equity fund Trustar Capital. According to Bloomberg, the amount of the upcoming deal could be around one and a half billion dollars. The corporation’s management has made a strategic decision to completely exit the video game development sector in order to focus its resources and attention on the development of artificial intelligence and cloud computing. Against the backdrop of growing competition in the e‑commerce sector, the company is consistently divesting itself of non‑core assets to optimize its business.

The proceeds and freed resources will be directed towards a large‑scale technological transformation. Over the next three years, Alibaba intends to invest more than fifty‑three billion dollars in the field of artificial intelligence. The corporation’s ambitious plans assume that by 2031 the AI sector will be able to generate around one hundred billion dollars in revenue.

The decision to sell the gaming division reflects the company’s overall course towards concentrating around key technological areas.

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The material was prepared solely for informational and educational purposes and does not constitute financial advice or a recommendation.