Alibaba Unveils AI Chip to Drive Global Data Center Buildout (2)

Alibaba plans to train an AI model with 5-10 trillion parameters, larger than its current 2.4 trillion-parameter model. The company also introduced the Zhenwu V900 AI chip, set for release in 2027, and aims to expand its data center capacity to 20 gigawatts by 2032. CEO Eddie Wu highlighted robust AI demand and supply chain challenges.

Alibaba shares rose 3% after its CEO announced plans for 20+ gigawatts of data centers by 2032 and launched a new chip. Quest Diagnostics and Labcorp fell 5% each due to Medicare payment adjustments. Vicor gained 9% on strong Q3 guidance. On Holding jumped 6% after setting new financial targets and a $1B share buyback plan. GameStop rose 3.5% after its CEO bought 1.2M shares.

China's internet regulator is investigating DeepSeek and Moonshot AI, along with five other companies, including Alibaba, over allegations of routing sensitive user data to Claude models without authorization, according to a report by The Information. The investigation follows a 154-page report by Anthropic detailing unauthorized use of Claude by seven Chinese companies, including the routing of sensitive Chinese state, police, and military data.

Alibaba Group unveiled its next-gen AI chip, Zhenwu V900, claiming 3x performance of its predecessor. The company aims to expand data center capacity to 20 GW by 2032. Alibaba is also developing AI models with 5-10 trillion parameters and plans a potential IPO for its semiconductor division, Pingtouge. Huawei is accelerating its Ascend 960 chip development, aiming for releases in 2027. Both companies are driving China's shift away from NVIDIA chips.

Alibaba unveiled its Zhenwu V900 AI chip, claiming 3x the performance of its predecessor, with mass production targeted for Q1 2027. The company also plans a 5-10 trillion parameter AI model, up from its current 2.4 trillion. Alibaba aims for 20 GW of cloud data center capacity by 2032 but faces supply chain constraints. Its stock rose 5.1% in Hong Kong. The announcements follow a year of hardware investments and competition with Huawei in China's AI chip market.

Alibaba's shares rose after it unveiled the Zhenwu V900, its most powerful AI chip, claiming 3x performance improvement. Meta's stock also surged following its AI agent Muse's success. Both events boosted AI sector optimism ahead of a Trump-Xi summit.