The development of the new AI chip by Alibaba comes amid efforts by Chinese technology firms to reduce reliance on foreign AI chip suppliers

In sum – what to know:

Alibaba develops new AI chip – The processor is designed for a wider set of inference tasks and is currently being tested.

China pushes domestic supply – The chip is manufactured locally, signaling a shift away from reliance on Taiwan Semiconductor and aligning with Beijing’s push for self-sufficiency.

Nvidia restrictions drive demand – Export limits on advanced Nvidia processors, including the H20, are motivating Chinese firms to develop alternatives and reduce dependence on U.S. suppliers.

Chinese company Alibaba Group has developed a new artificial intelligence chip designed to handle a wider range of inference task

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