Alibaba Group Holding Limited's recent $10.2 billion equity raise to fund its AI push has drawn investor scrutiny over potential share dilution. Bernstein SocGen lowered its price target on Alibaba to $165 from $180 on September 7, citing concerns about the timing and optics of the capital raise, though maintaining an Outperform rating. The central question for investors is whether Alibaba's AI investments can generate returns quickly enough to offset the dilution, especially given the company already held over $30 billion in net cash.