Alibaba Group Holding announced on August 17, 2026, it is selling its gaming arm Lingxi Games to Asian private equity firm Trustar Capital for a deal valued at no less than US$1.5 billion [1, 2, 3, 4]. The move is part of Alibaba’s strategic shift toward artificial intelligence and cloud computing, aiming to reach US$100 billion in AI revenue within five years [1, 2, 3, 4].
Lingxi Games was established as a distinct brand in 2019, evolving from Alibaba’s previous gaming operations and the 2017 acquisition of Ejoy studio, which laid the foundation for the company [5]. It operates multiple in-house game studios and platforms, including Jiuyou and JiaoYiMao, with its flagship title being Three Kingdoms: Strategy Edition, a large multiplayer online strategy game developed in partnership with Japan’s Koei Tecmo Holdings [1, 2, 5, 3, 4].
Zhou Bingshu, CEO of Lingxi Games, said Alibaba is transferring ownership of Lingxi to Trustar to better focus on its strategic priorities. "Alibaba is handing Lingxi to Trustar due to better focus on its strategic priorities," he said [1]. He added that "as part of Alibaba’s broader strategy to sharpen its focus, the group has decided to entrust Lingxi to Trustar Capital" [5].
In 2025, Lingxi Games’ reporting line shifted under Alibaba CFO Toby Xu Hong, signaling tighter financial oversight during corporate restructuring [5]. Alibaba has recently divested several non-core assets, including the hypermarket operator Sun Art Retail and department store chain Intime Retail [5].
In August 2026, shortly before the sale announcement, Alibaba released its largest AI model to date, claiming performance comparable to US-based Anthropic PBC, a global AI leader [1, 2, 3, 4]. This release underscores Alibaba’s intensified focus on AI development.
The sale to Trustar Capital marks a significant step in Alibaba’s pivot away from entertainment and towards artificial intelligence and cloud computing businesses. The deal is expected to close later this year once regulatory approvals and customary closing conditions are met [1, 2, 5, 3, 4].
