The technology giant is selling Lingxi Games as it sharpens its focus on artificial intelligence, cloud computing and future technology growth.
Hangzhou, China, 17 August 2026 – Alibaba is taking another major step toward its artificial intelligence ambitions with plans to sell its gaming business, Lingxi Games, for more than US$1.5 billion. The move reflects the company’s growing focus on AI and cloud computing as it reshapes its business for the next phase of technology growth.
Asian private equity firm Trustar Capital has agreed to acquire Lingxi Games, according to reports. The sale will allow Alibaba to reduce its presence in a business that is no longer considered central to its long-term strategy while directing greater attention and resources toward artificial intelligence and related technologies.
Lingxi Games is known for its popular strategy title Three Kingdoms: Strategy Edition, which was developed in partnership with Japan’s Koei Tecmo. The gaming studio has been part of Alibaba’s wider digital entertainment portfolio. Still, the company is now moving toward a more focused business model built around AI, cloud services and technology infrastructure.
The decision is part of a broader transformation underway at Alibaba. Under Chief Executive Officer Eddie Wu, the company has been reviewing its operations and prioritizing businesses that can support its future growth plans. Rather than managing a broad collection of unrelated digital businesses, Alibaba is increasingly concentrating on areas where it sees stronger long-term potential.
Artificial intelligence has become a major priority. Alibaba is investing heavily in AI models, computing capabilities and cloud infrastructure as businesses around the world increase their use of generative AI. The company has also set an ambitious target of generating US$100 billion in AI-related revenue within the next five years.
Alibaba’s AI efforts extend beyond developing advanced models. The company is working to connect its AI technology with cloud computing services, allowing businesses and developers to access tools for building and operating AI-based applications. This could strengthen the role of Alibaba Cloud as demand grows for computing power and digital infrastructure.
The company’s Qwen family of AI models has also become an important part of this strategy. Alibaba continues to expand its AI offerings as competition in the generative AI market increases. Its latest developments show how technology companies are moving quickly to build larger models, improve AI capabilities and attract developers to their platforms.
The sale of Lingxi Games highlights a wider trend across the global technology industry. Artificial intelligence requires major investments in research, skilled talent, data centers and high-performance computing. As a result, many companies are reviewing their existing businesses and deciding where their money and management attention can create the greatest value.
For Alibaba, selling the gaming arm could create more room to focus on these capital-intensive priorities. The company can direct its resources toward areas such as enterprise AI, cloud services, and advanced computing while simplifying its overall business structure.
The deal could also open a new chapter for Lingxi Games. Under Trustar Capital, the gaming business will have an opportunity to pursue its own growth strategy under new ownership. Meanwhile, Alibaba will continue moving forward with a clearer focus on technologies expected to play a larger role in the digital economy.
As AI adoption accelerates across industries, Alibaba’s latest business move shows how seriously the company is positioning itself for an AI-driven future. The US$1.5 billion sale is not simply about exiting the gaming sector. It is part of a larger effort to concentrate on artificial intelligence, cloud computing and the technology infrastructure that will support the next generation of digital services.
