Breakfast News: Alibaba's $3B AI Boost

September 11, 2025

1. Alibaba Set to Raise $3.17B for AI Race

Alibaba (BABA +1.28%) has announced a $3.17 billion capital raise via convertible bonds, the biggest offering of the year, highlighting the increasing cash needed to keep up with competition in the AI space.

• Part of the three-year $53 billion AI infrastructure deal: The proceeds will partly go toward scaling up its data centers, along with upgrading technology and expanding international commerce operations.
• "Alibaba is playing the long game – raising cheap capital, hedging dilution, and doubling down on growth": Ravi Wong, vice president at Yan Yun Family Office, noted it'll be worth watching how the fundraising translates into higher revenue.

2. Wall St. Dealmaking Roars Back

Goldman Sachs (GS +0.07%) is enjoying its busiest week for IPOs since July 2021, with Citi (C -0.30%) reporting a pickup in dealmaking activity, indicating growing confidence from U.S. companies.

• "M&A activity is up about 32% year over year but bigger than $10 billion (deals) activity is up 100%": Goldman CEO David Solomon spoke about the revival in sentiment, with rallying equity markets and strong initial performances from recent growth stock IPOs.
• "Our client base now is really starting to act with confidence": Citi CEO Jane Fraser cited clients being much more active, gaining confidence from clearer policy signals, with a reduced likelihood of a U.S. recession.

3. Mexico Eyes 50% Tariff on China Autos

Mexico, the world's biggest buyer of Chinese-made cars, is considering a 50% tariff on auto imports from China, as it seeks to foster good relations with the U.S. and preserve the existing free trade deal.

• A marked increase from the current 15-20% levy in place: The proposed draft bill to congress includes tariffs on other products such as textiles and steel, but autos are the most notable import to be impacted.
• Almost 90% of Mexican exports to the U.S. are tariff free: The current North America free trade agreement gives Mexico access to the U.S., but is up for review next year, with concerns China is using Mexico as a backdoor for U.S trade.

4. Next Up: ADBE, RH, and KR

Adobe (ADBE -6.73%) will report third-quarter earnings after the market closes, with optimism about further AI-driven gains following.

• Updates on production shift out of China expected: RH (RH +0.94%) is also due to release Q2 figures following the closing bell, with revenue expected to increase versus the same period last year, despite an and cost pressures.
• Beating earnings estimates every time over the past two years: Kroger (KR +0.14%) should report Q2 results before the market opens, with investors keen to see if the tariff concerns have now eased.

5. Would You Rather?

The last time we played a game of "Would You Rather" the choice was between Meta (META +1.00%) and Alphabet (GOOG -1.05%).

Today we're asking whether you'd rather have The Trade Desk (TTD -4.37%) or MercadoLibre (MELI -0.64%) in your portfolio, and why? Debate with friends and family, or become a member to hear what your fellow Fools are saying.