China’s richest province taps Alibaba to power its AI and chip push

Guangdong province in southern China has strengthened its partnership with technology giant Alibaba Group Holding, setting its sights on a comprehensive digital transformation encompassing artificial intelligence, semiconductors, and smart public services. This strategic collaboration was formalized with a framework agreement signing ceremony held on Thursday in Guangzhou, the provincial capital.

Alibaba, based in Hangzhou, pledged to increase its investments in areas such as computing power, AI models, and digital services, according to a report from Nanfang Daily, a local state media outlet. Provincial party secretary Huang Kunming expressed gratitude to Alibaba for its ongoing support in the province's economic and social growth, urging the company to intensify its efforts in technology innovation, research, development, and investment in Guangdong.

Huang highlighted potential synergies with energy and telecommunications firms to bolster computing capacity in the region, while also leveraging Alibaba's online marketplaces to promote local products. Alibaba CEO Eddie Wu Yongming emphasized the province's pivotal role in Alibaba's strategic growth, citing Guangdong's robust economic performance, thriving innovation ecosystem, and expansive consumer base.

Guangdong spearheaded the nation with a first-half GDP of 7.23 trillion yuan (approximately US$1.07 trillion). This partnership expands Alibaba's existing footprint in Guangdong, which includes an extensive intelligent computing cluster in Shaoguan, powered by proprietary Zhenwu AI chips from Alibaba's T-Head unit, and over 100 autonomous rack-climbing robots deployed at a warehouse within Cainiao's logistics hub in Dongguan.

This initiative aligns with Guangdong's 15th Five-Year Plan, launched earlier this year, which seeks to bolster technological self-reliance, scientific advancements, and coordinated urban-rural development. Huang noted that Alibaba could contribute further by allocating resources to modernize local agriculture, tourism, and offshore fish farming.