China ecommerce leader Alibaba on Thursday said it plans to raise about $3.2 billion through the sale of a zero-coupon convertible bond to fund international expansion and to strengthen its cloud computing business.

Alibaba, among China's most aggressive adopters of artificial intelligence, said it would use nearly 80% of the proceeds to expand data centres, upgrade technology and improve services to meet rising demand for cloud computing solutions.

It said it will invest the remaining 20% in enhancing market presence and improving efficiency in global e-commerce ventures.

The senior note will mature on September 15, 2032. The bond will convert into Alibaba's U.S.-listed shares.