Alibaba sells Lingxi Games for over $2 billion to focus on AI and cloud
Alibaba is exiting in-house game development by selling Lingxi Games to private-equity firm Trustar Capital for more than $2 billion, redirecting resources toward artificial-intelligence and cloud services.
Alibaba has arranged to sell its video-game development subsidiary Lingxi Games to private-equity group Trustar Capital for a price exceeding $2 billion, ending its direct involvement in game creation. Lingxi, known for the popular mobile game Three Kingdoms: Strategy Edition, will be handed over as the company concentrates on artificial-intelligence and cloud-computing initiatives that match China’s national economic agenda.
Internal communications from Lingxi CEO Zhou Bingshu described the transaction as a refocus on strategic priorities. Analysts such as Rui Ma explain that the divestiture is part of a larger cleanup of non-core holdings, driven by rising competition from rivals like Pinduoduo and Meituan. Alibaba has pledged roughly $53 billion to AI and cloud infrastructure over three years and aims for $100 billion in AI revenue by 2031. Experts like Usha Haley argue that the decision also mirrors Beijing’s push for domestic firms to invest in sectors deemed strategically important.
Why it matters
The sale shows Alibaba’s pivot to AI and cloud, sectors central to China’s future tech strategy.
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