China’s Alibaba launches international data centre push

Alibaba, a leading Chinese tech company, announced on Wednesday its plans to expand its global data centre presence, targeting markets in Europe and the Middle East. The company, based in Hangzhou, aims to establish its first cloud regions in Turkey, Finland, and the Netherlands, while expanding its footprint in Malaysia, Germany, the United Arab Emirates, France, and Hong Kong over the next year.

This move comes ahead of a crucial meeting between Chinese President Xi Jinping and US President Donald Trump in Washington, where they are expected to discuss trade tensions and other issues. Both nations are engaged in a tech rivalry, focusing on areas like semiconductors, artificial intelligence (AI), and robotics.

Alibaba CEO Eddie Wu revealed during the company's annual conference in Hangzhou that the firm plans to train an AI model with five to 10 trillion parameters, making it significantly larger than the current largest Chinese model. Alibaba also unveiled a new AI chip, the Zhenwu V900, claiming it delivers three times the performance of its predecessor, the Zhenwu M890. Wu stated that the Zhenwu M890 is currently the most powerful AI chip in China.

The new chip is expected to rival the US company Nvidia's H20, which is specifically designed for the Chinese market. Washington has imposed export controls on advanced chips necessary for cutting-edge AI, limiting access to top-end US semiconductors like Nvidia's. Beijing's drive for technological self-reliance has spurred Chinese technology firms to adopt domestic chips as alternatives to foreign products.

Alibaba's expansion plans reflect the country's ambitious efforts to maintain its position in the global tech industry amidst increasing competition.