Alibaba launches AI data center with 10,000 homegrown chips as China pushes self-sufficiency

Alibaba launches data center with 10,000 of its own chips as China ramps up AI push

Alibaba and China Telecom are launching a data center in southern China powered by the e-commerce giant's own chips, as the country ramps up its focus on homegrown AI infrastructure. The facility, announced on Tuesday, will feature 10,000 of Alibaba's Zhenwu semiconductors which are designed for AI training and inferencing along with the ability to support AI models the size of hundreds of billions of parameters. These are among some of the largest models out there and underscore how China's biggest tech players are advancing their own AI semiconductor technology as Beijing intensifies its push for self-sufficiency. Over the past few years, the U.S. has looked to restrict China's access to key semiconductor technology, including AI chips from Nvidia, which has accelerated the country's efforts to develop domestic alternatives.

Alibaba Zhenwu AI chip cluster Guangdong China Telecom

Alibaba and China Telecom have launched a data center in Shaoguan, Guangdong province, built around 10,000 of Alibaba's Zhenwu AI chips -- the first deployment of that scale in the Greater Bay Area, Alibaba's cloud unit said Tuesday. Capable of handling models reaching into the hundreds of billions of parameters, the Zhenwu processors are built to handle both AI training and inferencing workloads. Alibaba develops the chips through its T-head unit. The two companies said the facility is expected to expand to 100,000 chips and can serve industries from healthcare to advanced materials. Alibaba Cloud characterized the cluster as "fully domestic" and used the occasion to declare that the country's computing buildout had shifted from chasing benchmark milestones to achieving what it called "large-scale industrial implementation." The launch comes as Chinese technology companies accelerate efforts to build domestic AI infrastructure. Last month, a computing cluster built with Huawei's Ascend 910C AI chips went online, according to CNBC. U.S. export restrictions on advanced semiconductors, including Nvidia $NVDA AI chips, have pushed Chinese companies to develop homegrown alternatives. The company's cloud unit -- a consistently fast-growing segment in recent quarters -- spans the full stack from chip design and data center construction to proprietary AI models that are offered to customers as commercial services, according to CNBC. The chip restrictions have reshaped both sides of the market. China has directed its top technology firms, including Alibaba, to stop purchasing Nvidia chips, while separately Beijing issued guidance barring foreign-made AI chips from data center projects funded even partly by the state. The domestic alternative push reflected in the Shaoguan facility is a direct consequence of that pressure.

Alibaba, China Telecom launch AI data center powered by domestic chips By Investing.com

Investing.com -- Alibaba and China Telecom announced Tuesday the launch of a data center in southern China powered by Alibaba's self-developed Zhenwu AI semiconductors. The facility, located in Shaoguan in Guangdong province, will feature 10,000 of Alibaba's Zhenwu chips designed for AI training and inferencing. The data center can support AI models with hundreds of billions of parameters and is expected to expand to a scale of 100,000 chips. Stay ahead of every breaking move with real-time news on InvestingPro -- save 50% today. Alibaba designs chips through its T-head unit. The Hangzhou-based company is one of China's largest cloud computing players and sells AI models through its cloud computing division, which has been among its fastest-growing businesses in recent quarters. China Telecom and Alibaba said the computing cluster can be used in industries from healthcare to advanced materials. The launch comes as Chinese firms accelerate efforts to develop domestic chip alternatives. The U.S. has restricted China's access to key semiconductor technology, including AI chips from Nvidia. Last month, a computing cluster built with Huawei's Ascend 910C AI chips went online in China.