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Alibaba Unveils Powerful AI Chip, Zhenwu V900, to Fuel Global Data Center Expansion
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CNBC TV18•22-09-2026, 08:44
Alibaba Unveils Powerful AI Chip, Zhenwu V900, to Fuel Global Data Center Expansion
- •Alibaba Group Holding Ltd. launched the Zhenwu V900, an AI accelerator chip, aiming to compete with Nvidia and support a massive global data center buildout.
- •The new chip, from Alibaba's T-Head division, reportedly triples the performance of its predecessor and can be clustered in units of up to 500,000 for frontier-model training.
- •Alibaba plans to invest over $53 billion in AI capabilities and targets 20 gigawatts of global data center capacity for Alibaba Cloud by 2032.
- •The company intends to develop a large AI model with 5 to 10 trillion parameters and plans to list its T-Head division to capitalize on the AI accelerator market.
- •Despite recent profit plunges due to heavy AI spending, Alibaba expects annualized AI-related revenue to reach $10 billion this quarter and aims to quintuple cloud and AI revenue to $100 billion in five years.
Key Questions Answered
Alibaba rolled out the Zhenwu V900 accelerator through its T-Head division, which it states triples the performance of its predecessor and can be combined in clusters of up to 500,000 units.
Chief Executive Officer Eddie Wu set a target of 20 gigawatts of data centre capacity globally for Alibaba Cloud service by the year 2032.
Alibaba has committed to spending more than $53 billion over a three-year period to expand its artificial intelligence capabilities.
