Alibaba Shares Jump After Unveiling New AI Chip

Alibaba Group unveiled its new Zhenwu V900 AI chip, claimed to be the most powerful in China, with three times the performance of its predecessor. The company also plans to train an AI model with 5-10 trillion parameters and expand its data centers to 20 gigawatts by 2032. Alibaba aims to meet rising AI demand despite global supply chain shortages, according to CEO Eddie Wu.

Alibaba unveiled the Zhenwu V900, China's most powerful AI chip, aiming to challenge Nvidia. The chip offers improved performance and memory, with mass production planned for Q1 2027. Alibaba is investing $53 billion in AI and cloud infrastructure, targeting $100 billion in combined cloud and AI revenue within five years. The company's AI-related product revenue reached $7.3 billion annually, with a payback period for AI-related capex expected in about three years.

Alibaba unveiled the Zhenwu V900 AI chip, claiming it is three times more powerful than its predecessor. The chip is designed for training large AI models and will enter mass production in 2027. Alibaba also plans to build 20 gigawatts of data center capacity by 2032, potentially generating $160 billion in revenue, according to Citigroup. The company aims to develop AI models with 5 to 10 trillion parameters. Alibaba shares rose 5% on Tuesday.

Alibaba shares rose 3% in Hong Kong trading after announcing a new AI chip, the Zhenwu V900, and plans to expand global data center capacity to 20 gigawatts by 2032. The company aims to enter mass production of the chip in Q1 2027 and is developing advanced AI models, including Qwen 4. CEO Eddie Wu emphasized strong customer demand and long-term growth potential in AI.

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Alibaba Group (HK-listed) introduced an AI chip, part of its strategy to invest in AI, semiconductors, and cloud infrastructure. The move aims to meet growing demand for computing power and solidify its AI position, according to CEO Eddie Wu.