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Alibaba unveils powerful AI chip to drive global data centre expansion

It aims to compete with Nvidia and wants to intensify investment in AI hardware and infrastructure.

Alibaba Group Holding has unveiled its most powerful AI chip to date, the Zhenwu V900 accelerator, aimed at competing with Nvidia and expanding data centre capacity. This announcement comes as the e-commerce company plans to invest over US$53 billion over three years to boost its AI capabilities. The new Zhenwu V900 accelerator, capable of being clustered up to 500,000 units, promises to triple the performance of its predecessor.

Alibaba CEO Eddie Wu emphasized the pursuit of artificial general intelligence, setting a goal for the company to develop models with between five and 10 trillion parameters by 2032. This ambitious target suggests a significant expansion of data centre capacity, potentially generating more than US$160 billion in external revenue.

The company's plans contrast with recent calls for a more cautious approach to AI development from top US labs, such as Anthropic. Despite these warnings, Alibaba remains committed to its aggressive AI strategy, with its shares surging following the announcement. However, Alibaba's progress in producing enough silicon for domestic demand is currently unclear, especially given US export controls limiting access to leading chipmakers.

Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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