The Alibaba gaming sale is expected to take Lingxi Games private through Trustar Capital, in a transaction that could value the Chinese gaming company at more than $1.5 billion. The move comes as Alibaba continues to shift its focus toward artificial intelligence and cloud computing.

According to an internal memo seen by Bloomberg, Trustar Capital has agreed to buy out Lingxi Games from Alibaba. There has been no official confirmation of the final amount involved, although Bloomberg previously estimated the deal value at around $1.5 billion.

Zhou Bingshu, chief executive of Lingxi Games, said that “Alibaba made the decision to divest its gaming business to focus on other strategic initiatives.”

Alibaba Gaming Sale Supports AI Push

The Alibaba gaming sale comes as Eddie Wu, Alibaba’s chief executive, continues a broader reorganization of the company. Alibaba has been divesting businesses outside its core areas while increasing its emphasis on AI and cloud computing.

Alibaba has said it intends to generate $100 billion from AI over the next five years, putting the company in direct competition with major U.S. technology groups.

Earlier this month, Alibaba unveiled its largest AI model to date and said it was comparable to Anthropic’s best-performing model. The launch underscored the importance AI now holds in Alibaba’s long-term strategy.

Lingxi Games Sale Reshapes Alibaba’s Business Mix

By selling Lingxi Games, Alibaba will part with one of its key gaming units as it continues to streamline its operations. Trustar Capital will take control of a studio that has a successful gaming business and one of its most important titles.

Three Kingdoms: Strategy Edition, a multiplayer game developed by the studio in collaboration with Koei Tecmo Holdings of Japan, is among Lingxi’s most significant releases.

The deal therefore represents more than a simple ownership transfer. It also reflects Alibaba’s decision to direct resources toward areas it sees as more important to its future development, particularly AI and cloud services.

With the transaction, Trustar Capital will take over Lingxi Games as Alibaba reshapes its portfolio around its technology priorities. The sale may become another milestone in Alibaba’s transition toward AI-led growth.

Also Read | XRP Price Could Target $10 as Key Trendline Holds and SBI Rewards Drive Adoption

Also Read | Chainalysis Challenges $94.7M ICE Contract Awarded to TRM Labs