Alibaba is set to sell its gaming division, Lingxi Games, to private equity firm Trustar Capital, with the deal potentially generating around $1.5 billion, according to Bloomberg.
The tech giant aims to exit the video game development space in order to concentrate on artificial intelligence and cloud technologies. In light of fierce competition in e-commerce, the company appears to be divesting non-core assets.
Over the next three years, Alibaba plans to invest more than $53 billion in its AI initiatives, with expectations of generating $100 billion in revenue from this sector by 2031.