Alibaba Unveils Zhenwu V900 AI Chip and Announces Major Data Centre Expansion
Alibaba Group (NYSE:BABA) announced a new artificial intelligence chip, the Zhenwu V900, which it claims is China's most powerful. The company also outlined plans to expand its data centre capacity to over 20 gigawatts by 2032 during its Apsara Conference in Hangzhou. The Zhenwu V900 offers three times the performance of its predecessor and can be deployed in clusters up to 500,000 units. Alibaba aims to train AI models with up to 10 trillion parameters using this infrastructure. CEO Eddie Wu emphasized robust customer demand for AI-driven services, which is contributing to growth at Alibaba Cloud. Citi analysts projected that the expansion could lead to $160 billion in external cloud revenue by FY2033, representing a compound annual growth rate of around 40%. However, increased capital spending on AI has already impacted profitability, with net profit declining sharply in recent quarters.
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Topics: AI chip launch Alibaba Group data centre expansion Zhenwu V900