Why is Alibaba stock surging today?
Alibaba's stock surged by 3.7% to HK$116.8 on Tuesday following the unveiling of a new artificial intelligence chip and a commitment to AI infrastructure development. At the company's annual Apsara Cloud Conference in Hangzhou, CEO Eddie Wu introduced the Zhenwu V900 accelerator, claiming it as China's most powerful AI chip. The V900 offers three times the computing performance of its predecessor and can be clustered in groups of up to 500,000 units for training frontier AI models.
Wu also set a target for Alibaba Cloud to operate more than 20GW of global data center capacity by 2032. This development suggests that Alibaba's AI ambitions remain strong, with significant investments already made in the technology. Additionally, Alibaba's stock was part of a broader rally in tech stocks, which followed overnight gains in their U.S. counterparts. The Hang Seng index rose by 0.4% on Tuesday.
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