Alibaba has agreed to sell its gaming unit Lingxi Games to Trustar Capital in a deal valued at over $1.5 billion, according to an internal memo. The sale aligns with CEO Eddie Wu’s broader restructuring that shifts Alibaba’s focus toward artificial intelligence and cloud computing. The company has set a target of $100 billion in AI revenue over five years and recently launched its largest AI model to date. Lingxi Games’ CEO Zhou Bingshu confirmed the decision to divest. The transaction includes control of the studio’s flagship title, Three Kingdoms: Strategy Edition.
The Alibaba gaming sale will take Lingxi Games private via Trustar Capital, with the Chinese gaming company’s valuation exceeding $1.5 billion. This move is part of Alibaba’s broader effort to concentrate on artificial intelligence and cloud computing.
According to an internal memo, Trustar Capital has agreed to buy out Lingxi Games from Alibaba. While no final figure has been confirmed, the deal value has been estimated at around $1.5 billion.
Lingxi Games CEO Zhou Bingshu stated that “Alibaba made the decision to divest its gaming business to focus on other strategic initiatives.” The sale comes as CEO Eddie Wu reorganizes the company, divesting non-core businesses while prioritizing AI and cloud computing.
Alibaba intends to earn $100 billion from AI in the next five years, placing it in direct competition with top U.S. tech firms. The company unveiled its biggest-ever AI model this month, claiming it matches the performance of Anthropic’s best model.
With the gaming sale, Alibaba divests a key unit and grants Trustar Capital control of a studio with a successful portfolio. Lingxi’s most important game is Three Kingdoms: Strategy Edition, a multiplayer title developed with Japan’s Koei Tecmo Holdings.
The transaction reflects Alibaba’s resource prioritization toward AI and cloud services. As the company adjusts its portfolio, the sale marks a milestone in its transition toward AI-led growth.
