Alibaba deepens AI push with new chip, bigger model; shares jump 5%
Alibaba Group is developing an AI model up to four times larger than its current flagship, Qwen 3.8 Max. The company also unveiled the Zhenwu V900, a new AI chip from its T-Head semiconductor unit. This chip offers three times the performance of its predecessor. Alibaba’s Hong Kong-listed shares jumped 5.1 percent following these announcements. The moves reflect China’s push for domestic AI alternatives.
Alibaba’s new Zhenwu V900 chip and plans for a five to 10 trillion parameter Qwen model show its full-stack AI ambition. The chip, set for mass production in Q1 2027, aims to reduce reliance on Nvidia. Chief Executive Eddie Wu predicted machines would produce 1,000 times humanity's "thinking," up from less than three percent today. This reflects a clear strategic direction for Alibaba Cloud.
The push for domestic AI chips and larger models specifically targets US export curbs. This benefits Alibaba Cloud, which reports "exceptionally robust" customer demand for AI. Alibaba Cloud's global data center capacity target of 20 gigawatts by 2032 shows its commitment. The company expects "significant growth" in annual AI chip shipments, bolstering China’s domestic AI infrastructure.
The real test for Alibaba is whether its Qwen team can achieve "meaningful" progress in model self-improvement. Wu’s forecast of AI superintelligence is ambitious. The Zhenwu V900’s ability to link 500,000 chips for training is a key metric to watch. If Alibaba can deliver on these scaling promises, it will solidify its position against international competitors.
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T-Head unveils Zhenwu V900 AI chip in Alibaba’s push to expand its AI infrastructure stack
Our earlier report detailed Alibaba's T-Head Zhenwu V900 AI chip, a core component of this strategic push.
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