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Alibaba Group Holding Ltd. ADR is selling its Lingxi Games unit to Trustar Capital for at least $1.5 billion.

Alibaba Group Holding Ltd. ADR is offloading its gaming unit, Lingxi Games, to Asian private-equity firm Trustar Capital in a deal valued at a minimum of $1.5 billion. The move is intended to bolster the Chinese tech giant's strategic focus on artificial intelligence (AI). Zhou Bingshu, the Chief Executive of Lingxi Games, stated that the sale is part of a roadmap to sharpen the company's strategic focus. By divesting non-core businesses, Alibaba Group Holding Ltd. ADR is streamlining its portfolio to free up resources for AI and e-commerce investment. The company has already seen a surge in AI model downloads, surpassing major competitors like Meta Platforms Inc. and Alphabet Inc. The transaction allows Alibaba Group Holding Ltd. ADR to capitalize on the market while other gaming studios, such as Moonton, are being sold by ByteDance. This divestiture follows other recent sales, including stakes in Sun Art and Intime for a combined $2.6 billion.

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