ARTFEED — Contemporary Art Intelligence

Alibaba Sells Gaming Unit Lingxi Games to Trustar Capital for $1.5B to Fund AI

economy-finance · 2026-08-17

Alibaba Group has made a significant move by agreeing to sell its gaming unit, Lingxi Games, to Trustar Capital, a private-equity firm based in Asia, for a minimum of $1.5 billion. According to an internal memo seen by Reuters and The Wall Street Journal, this deal is expected to bring in over $2 billion for Alibaba, as per a source close to the matter. This sale aligns with Alibaba's plan to shed non-essential assets and invest more in artificial intelligence. It's one of the company's biggest sell-offs lately, reflecting a wider trend among Chinese tech companies to refine their focus on new technologies. Trustar Capital will take over Lingxi Games, a smaller part of Alibaba's business, with the deal likely closing in the next few months, subject to regulatory clearance.

Key facts

  • Alibaba Group has reached a formal agreement to sell its gaming unit, Lingxi Games.
  • The buyer is Asian private-equity firm Trustar Capital.
  • The deal is worth at least $1.5 billion.
  • Alibaba is expected to receive more than $2 billion from the transaction.
  • The information comes from an internal memo reviewed by Reuters and The Wall Street Journal.
  • The sale is intended to fund Alibaba's AI push.
  • The transaction is subject to regulatory approvals.
  • The deal is part of Alibaba's broader strategy to divest non-core assets.

Entities

Institutions

  • Alibaba Group
  • Trustar Capital
  • Lingxi Games
  • Reuters
  • The Wall Street Journal
  • Alibaba Group Holding
  • Citic Capital
  • South China Morning Post
  • Sun Art Retail
  • Intime Retail
  • Ejoy
  • NetEase
  • Game Grape

Locations

  • Hangzhou
  • China

Sources