Alibaba’s Bold Move in AI Semiconductors
Alibaba is ramping up its AI capabilities with a new chip focused on inferencing, set to reshape the landscape of artificial intelligence technology in China.
- Investment Surge: Alibaba plans to invest ¥380 billion ($53.1 billion) in AI over the next three years.
- Homegrown Solutions: Amid geopolitical tensions, Chinese firms are prioritizing local chip development, reducing reliance on external vendors like Nvidia.
- Revenue Growth: The company’s cloud division grew 26% year-on-year, and AI-related product revenue has seen triple-digit growth for eight consecutive quarters.
- Future Focus: Unlike Nvidia, Alibaba will rent computing power based on its new chips rather than sell them outside.
As emerging players like Huawei and Baidu join the AI semiconductor race, Alibaba’s strategic shift positions it at the forefront of innovation.
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