Alibaba shares rise amid AI computing deal with Moonshot
Alibaba Group's (NYSE:BABA) U.S.-listed shares rose nearly 5% after reports surfaced that its cloud infrastructure supports a significant portion of the computing power behind Chinese startup Moonshot AI’s Kimi models. According to Bloomberg, Alibaba provides access to approximately 20,000 Nvidia Corporation (NASDAQ:NVDA) Hopper-generation chips for this purpose. While Alibaba denied supplying specific H200 processors used in the deal, it did not refute reports of a broader agreement involving thousands of chips. The arrangement highlights Alibaba's growing role as an infrastructure provider within China’s AI ecosystem and underscores continued demand for Nvidia hardware despite U.S.-imposed export controls on advanced chip sales to Chinese firms. Moonshot recently launched Kimi K3, which reportedly outperforms some models developed by Alibaba itself, illustrating the complex relationship between investor, cloud partner, and competitor. The deal also reflects broader trends in China’s AI industry, where domestic companies are leveraging foreign hardware through alternative access methods such as remote computing arrangements. However, neither Moonshot nor Nvidia has publicly confirmed details of their involvement.
Topics: AI cloud-computing Moonshot AI Nvidia chips