Alibaba founders set up charity fund with praise from Gates and Buffett

The founders of Alibaba, the Chinese Internet giant, announced on Friday that they will set up a charitable fund.

Internet entrepreneurs Jack Ma and Joe Tsai said the personal charitable trust will be funded by 2 percent of Alibaba's equity, which they received as share options in the company last year.

Alibaba announced in March its plans to go public in the United States. The company's valuation has been estimated at between $100 billion and $200 billion. Based on the estimation, Ma's foundation is expected to boast funding between $2 billion to $4 billion.