China’s Tech Giants—Alibaba, Tencent, Baidu, and JD.com—Raise Over $5 Billion in Bonds to Fund AI and Digital Infrastructure Expansion

In September 2025, three of China's largest tech conglomerates—Alibaba Group Holding Ltd., Tencent Holdings Ltd., and Baidu Inc.—collectively raised upwards of $5 billion via bond issuances. These capital raises come as these firms accelerate their investments in artificial intelligence (AI) and digital infrastructure, signaling a major push to compete globally in the AI technology race.

Bonds issued include Tencent’s return to the bond market after a four-year hiatus with a multi-tranche dim sum bond offering worth several billion dollars, Alibaba’s $3.2 billion convertible note sale maturing in 2032, and Baidu’s recent RMB 4.4 billion (approximately $618 million) bond issuance. This borrowing strategy reflects a broader trend among China’s leading internet companies to lock in long-term, cost-effective financing to fund capital-intensive AI and cloud growth initiatives.

Projected AI Capital Expenditure for 2025 Hits $32 Billion for These Giants, Backed by Larger National Spending

Including JD.com, which is increasing AI-related spending mostly focused on smart retail and supply chain AI applications, the combined AI capital expenditure (capex) planned by these four companies is expected to surpass $32 billion in 2025. This figure forms part of a much larger surge in AI investment nationwide, with some reports forecasting China's total AI capex for 2025 to approach $84 to $98 billion.

According to Bank of America research, while the Chinese government is expected to contribute roughly $56 billion through direct investments and special-purpose bonds, major internet companies like Alibaba, Tencent, Baidu, and JD.com are committing approximately $24 billion toward AI projects. Additional inputs come from telecom operators and infrastructure providers.

Focus Areas for AI and Digital Infrastructure Investment

• Cloud Computing and Data Centers: Alibaba and Tencent, in particular, are heavily investing in expanding cloud infrastructure and AI data centers to support burgeoning AI workloads. Alibaba has unveiled plans to invest 380 billion yuan (~$53 billion) over three years in computing and AI infrastructure. Tencent’s AI-related capex in late 2024 alone surged nearly fourfold year-on-year to 36.6 billion yuan (~$5.1 billion).

• AI Research and Platforms: Alibaba Cloud’s AI models, such as Qwen, have seen significant global adoption, boasting over 400 million downloads and spawning more than 140,000 derivative models to date. Baidu continues to push AI innovation in cloud AI, autonomous driving, and AI applications but faces challenges with advertising revenue.

• AI Applications and Agents: The World Artificial Intelligence Conference 2025 underscored a shift from merely developing large language models to launching tangible AI agents and applications that enhance human productivity and interaction, including consumer-facing AI assistants and enterprise tools driven by Tencent’s Weixin super-app and Alibaba’s extensive ecosystem.

Financial and Strategic Implications

The surge in AI expenditures is driving record capital expenditures across the tech sector in China and globally. For example, broad webscale infrastructure spending in 2Q 2025 rose 77% year-over-year, reaching $122 billion, a sign of the industry's race to develop AI capabilities and cloud infrastructure.

Despite this surge, some analysts point out that Chinese tech giants' capital spending remains conservative relative to their profits. Companies like Tencent have been criticized for allocating more cash toward share buybacks, dividends, and debt repayments than on infrastructure investment. Supply chain constraints and chip export controls also pose hurdles for scaling AI investments in China.

Nevertheless, the heavy bond-market fundraises—such as Tencent’s multi-tranche dim sum bond—with syndicates including top banks like Bank of China, JPMorgan, and Morgan Stanley underscore confidence in China’s tech growth, particularly in AI sectors. The proceeds provide financial flexibility to accelerate AI and cloud warfare alongside U.S. giants like Microsoft, Google, and Amazon.

Broader China AI Ecosystem and Infrastructure Race

China’s AI ambitions extend beyond just tech companies. The government is actively investing in the expansion of green energy infrastructure to power AI data centers, essential to feed the massive computing demands of AI models. This push is part of a strategic response to the U.S.’s large-scale investments such as the Stargate Project, aiming to build next-generation AI data centers nationwide.

Resource demand tied to AI infrastructure is skyrocketing, with markets for copper, power equipment, and liquid cooling systems forecast to grow at double or triple-digit compounding annual rates in 2025 alone, highlighting the scale and resource intensity of the AI push.

Summary Table: Bond Amounts and AI Capex Projections

Total combined AI capex for these firms likely exceeds $32 billion in 2025, contributing significantly to China’s broader AI capital expenditure forecast of up to $98 billion this year.gurufocus+6

This aggressive AI funding and infrastructure buildout position China’s internet giants to compete robustly with global technology leaders amidst one of the most consequential technology races shaping the future of digital economies worldwide. Their bond market activities reveal innovative financing approaches to sustain long-term AI leadership while managing the capital intensity required for digital transformation.