Alibaba sells Lingxi Games in over $2B deal as it doubles down on AI

Alibaba is parting ways with its gaming subsidiary Lingxi Games in a deal expected to bring in more than $2 billion, according to Reuters. The sale marks another chapter in Alibaba’s strategy of trimming the fat to fuel its AI and cloud computing push. The buyer appears to be Trustar Capital, an Asia-based private equity firm that reportedly outbid multiple competitors to land the deal. Bloomberg had earlier pegged the valuation at more than $1.5 billion, but the final figure climbed past the $2 billion mark. From battlefield to boardroom Lingxi Games operates five self-developed game studios and runs platforms including 9Game and Jiaoyimao. Its crown jewel is “Three Kingdoms: Strategy Edition,” a mobile strategy title that has built a substantial player base in China and beyond. The deal’s trajectory tells an interesting story about market appetite. Back in June 2026, when Alibaba first explored selling the unit, the valuation range sat at roughly 7 to 9 billion yuan, or approximately $1.03 billion to $1.33 billion. That Trustar ultimately pushed the price well above $2 billion suggests either fierce competitive bidding or a reassessment of Lingxi’s earnings potential. Alibaba’s g...