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Corporate

Bloom raises $3.6 mn to digitise US manufacturing

America’s push to rebuild its manufacturing base is creating a new problem: finding the right companies to actually make things.

Detroit-based startup Bloom is betting that artificial intelligence can help solve it. The company has raised $3.6 million in fresh funding to build a digital marketplace that connects hardware companies with manufacturers and other supply chain businesses across the US.

The funding comes as American companies increasingly look for domestic production partners amid shifting trade policies, tariffs and growing concerns around overseas supply chains. At the same time, a new generation of startups is building physical products ranging from robots and drones to electric vehicles and specialised industrial equipment.

Bloom wants to become the digital infrastructure connecting these businesses with the factories and suppliers they need.

The startup was founded in 2023, initially with a more hands-on approach to manufacturing and logistics. Its early focus was on mobility companies, particularly electric bike and scooter makers. Bloom helped these businesses manage manufacturing, logistics and other operational requirements.

The founders eventually realised that the bigger opportunity was not managing production themselves but helping companies find the right partners.

That led Bloom to develop an online marketplace where businesses can search for manufacturers, suppliers and service providers based on their specific needs. The company describes its ambition as building an “Alibaba for American manufacturing”, with AI playing a central role in how buyers and suppliers are matched.

The new funding round was led by SNAK Venture Partners, with participation from Flyover Capital, Mana Ventures, Detroit Venture Partners, Invest Detroit Ventures and the Michigan Outdoor Innovation Fund.

Bloom plans to use the capital to expand its platform and grow its network of manufacturing and supply chain providers.

The company says its platform has already facilitated more than 2,000 matches involving more than 140 companies. Instead of relying on traditional supplier searches, customers can describe what they need and use Bloom’s technology to identify potential partners.

The requirements can be highly specific. A company developing a new hardware product may need not just a factory, but also engineering support, component suppliers, assembly, freight, warehousing or repair services. Bloom is attempting to bring those capabilities together through one marketplace.

Its AI tools are designed to make that search faster. Rather than simply producing a list of manufacturers, the platform attempts to identify suppliers based on their capabilities and the requirements of a particular project.

That could prove especially useful for smaller hardware startups. Unlike large corporations, young companies often lack procurement teams with years of industry contacts. Finding a factory capable of meeting production volumes, technical specifications and delivery schedules can become a major hurdle.

Bloom wants to turn that traditionally relationship-driven process into something closer to an online transaction.

Manufacturers also stand to benefit. Many small and medium-sized factories have specialised capabilities but limited resources for finding new customers. A digital marketplace could give them access to companies they might otherwise never reach.

Bloom says its supplier database combines publicly available information with data supplied directly by manufacturers. The company is also building information through customer onboarding, transactions and successful supplier matches.

That data could become increasingly valuable as the marketplace expands. Each new transaction can provide more insight into which manufacturers specialise in particular products, materials or production processes.

The company’s growth has also attracted investor attention. SNAK Venture Partners first encountered Bloom in 2025 but held back from its earlier funding round, choosing to wait for stronger evidence of demand. Bloom subsequently reported significant growth, generating as much revenue in the first five months of 2026 as it had throughout the previous year.

The company also said its platform memberships increased fivefold.

Bloom’s timing reflects a larger shift in the American industrial economy. Companies are looking more closely at domestic manufacturing, while investors and policymakers are encouraging the development of local supply chains. Yet rebuilding manufacturing capacity is not simply about opening factories. Companies also need better ways to discover, evaluate and work with those suppliers.

That is where Bloom sees its opening.

The startup is not trying to manufacture products itself. Instead, it wants to make the fragmented US manufacturing ecosystem easier to navigate.

Its success will depend on whether it can build enough trust on both sides of the marketplace. Buyers need reliable suppliers that can deliver on quality, cost and deadlines, while manufacturers need a steady flow of credible customers.

If Bloom can establish that network, its platform could become more than a supplier directory. It could become a digital marketplace for the growing number of American companies trying to turn ideas into physical products.

At a time when the US is talking increasingly about bringing manufacturing back home, Bloom is betting that the next step is making that manufacturing easier to find.

 

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Corporate

Alibaba shares plunge after $10.2 bn AI funding plan

Alibaba shares fell sharply on Monday after the Chinese technology giant announced an HK$80 billion ($10.2 billion) share placement to fund its artificial intelligence expansion. The move is aimed at strengthening Alibaba’s AI infrastructure, computing capacity and technology portfolio, but investors reacted negatively to the size and discounted price of the fundraising.

Alibaba shares fell as much as 11% in Hong Kong trading, marking their steepest decline in more than a year. The stock later pared some losses but remained under pressure as investors weighed the long-term benefits of the company’s AI strategy against the immediate impact of issuing new shares.

The company said it would issue 710 million new shares at HK$112.70 apiece, raising about HK$80 billion. The price represented an 8.4% discount to Alibaba’s Friday closing price of HK$123. The deal is the largest-ever primary follow-on share offering by a company listed in Hong Kong.

Alibaba has been spending heavily to build its position in the global AI race. The company wants to expand across the AI technology stack, including computing infrastructure, chips, cloud services, large language models and AI applications.

The new funds will support that strategy at a time when competition is intensifying among technology companies in China and overseas. Alibaba is also trying to strengthen Alibaba Cloud, which has become a key part of its AI growth plans.

The company has previously committed 380 billion yuan ($56.5 billion) over three years to AI infrastructure and related investments. A large portion of that spending has already been deployed, highlighting how quickly the cost of competing in artificial intelligence is increasing.

Alibaba has argued that demand for its AI and cloud services is growing strongly. It has also shortened its expected payback period for AI-related infrastructure to around 2.5 years, suggesting management believes rising demand can eventually translate into stronger returns on its investment.

However, the immediate concern for shareholders is dilution. By issuing 710 million new shares, Alibaba is increasing the total number of shares in circulation. Existing shareholders will therefore own a slightly smaller percentage of the company unless the additional investment generates enough growth and profits to offset the dilution.

The discounted issue price added to those concerns. Alibaba shares were trading well above the placement price before the announcement, prompting investors to question why the company needed to raise such a large amount of capital through an equity offering at a discount.

The strong market reaction shows that investors are increasingly demanding evidence that Alibaba’s huge AI spending will generate attractive returns rather than simply increasing costs.

The fundraising comes after Alibaba reported a sharp decline in quarterly profit. The company’s net profit fell 75% year-on-year, even as revenue increased. Heavy investment in AI infrastructure was a major factor behind the pressure on earnings.

Despite the profit decline, Alibaba’s underlying business continues to expand. The company reported 9% revenue growth for the June quarter, indicating that its core businesses remain resilient.

Its cloud and AI operations have become particularly important to the growth story. Investors are increasingly viewing Alibaba not simply as an e-commerce company but as a broader technology platform competing in cloud computing, artificial intelligence and digital services.

That transition, however, requires substantial investment. Alibaba is effectively making a major financial bet that AI will become one of its most important growth engines. The company needs to spend heavily on data centres, computing power and AI models before those investments can generate meaningful commercial returns.

Alibaba’s decision comes as Chinese technology companies accelerate their AI investments. Competition is growing around large language models, cloud computing and AI applications, with companies seeking to develop systems that can compete with leading global models.

The pressure is not limited to China. Alibaba is also competing indirectly with major US technology companies such as Microsoft, Amazon and Alphabet, all of which are spending heavily on AI infrastructure.

This has created a difficult environment for investors. While artificial intelligence is widely viewed as a major long-term growth opportunity, the enormous capital required to build the necessary infrastructure has raised questions about profitability and the eventual return on investment.

Alibaba’s share sale therefore represents both an opportunity and a risk. The company gains access to significant capital without relying entirely on its existing cash reserves. But shareholders are being asked to accept dilution at a time when quarterly profits are already under pressure.

Despite the negative reaction in the stock market, demand for the share placement was strong. Reports said the order book attracted around $28 billion in demand, almost three times the amount Alibaba was seeking to raise. The strong interest suggests institutional investors remain confident in Alibaba’s long-term AI and cloud prospects despite concerns over near-term earnings.

Alibaba Chairman Joe Tsai and CEO Eddie Wu also bought shares separately in the market, according to Hong Kong filings, signalling continued confidence from the company’s top leadership.

The company is now under pressure to show that its AI investments can deliver results. Investors will closely track growth in Alibaba Cloud, AI-related revenue, capital expenditure and free cash flow in the coming quarters.

For Alibaba, the message from Monday’s sell-off is clear. Investors are willing to finance its AI ambitions, but they want proof that the spending can translate into sustainable growth and higher profitability.

The company has secured the money needed for its next phase of expansion. The bigger challenge will be turning that $10.2 billion AI funding into returns strong enough to justify the dilution and restore investor confidence.

 

Categories
Corporate

Anthropic claims Alibaba targeted Claude in AI data raid

Artificial intelligence company Anthropic has accused Chinese tech giant Alibaba of using thousands of fake accounts to copy the capabilities of its AI chatbot, Claude.

The company claims nearly 25,000 fraudulent accounts generated around 28.8 million interactions with Claude between April and June in an alleged attempt to train Alibaba’s Qwen AI models without permission.

Anthropic described it as the largest known AI “distillation” campaign and has urged US lawmakers to introduce stronger safeguards against unauthorised AI model extraction. Alibaba has not responded publicly to the allegations. The dispute highlights growing competition in the global AI industry.

 

Categories
Beyond

US labels BYD, Alibaba, Baidu as Chinese military firms

The United States has added several major Chinese companies, including BYD, Alibaba Group and Baidu, to its list of firms allegedly linked to China’s military, marking a fresh escalation in the ongoing strategic and technology rivalry between the world’s two largest economies.

The designation was made by the US Department of Defense, which maintains a list of companies it believes have connections to the Chinese military. Inclusion on the list does not automatically trigger sanctions or immediate restrictions, but it can discourage US investment and increase regulatory scrutiny of the affected companies.

US officials said the move reflects concerns about the relationship between China’s military establishment and large private-sector companies operating in strategically important industries such as artificial intelligence, advanced technology, data services, electric vehicles and communications.

The latest additions include some of China’s most prominent corporations. BYD is one of the world’s leading electric vehicle manufacturers, while Alibaba and Baidu are major players in e-commerce, cloud computing, artificial intelligence and digital services.

The companies have denied any military links and rejected the Pentagon’s characterisation. They argued that they are commercial enterprises operating independently and in compliance with applicable laws and regulations. Some firms indicated they would review legal options and engage with US authorities regarding the designation.

China strongly criticised the decision, accusing Washington of politicising trade and technology issues and attempting to suppress Chinese companies under the guise of national security concerns. Beijing said such actions undermine fair competition and disrupt global business operations.

The development comes amid continuing tensions between the United States and China over technology leadership, trade policies, semiconductor restrictions and national security concerns. In recent years, Washington has imposed a range of measures targeting Chinese technology firms, while Beijing has responded with its own regulatory and economic actions.