AI and semiconductor stocks are driving tech sector gains,
Alibaba has unveiled its new artificial intelligence chip, the Zhenwu M890, which boasts three times the power of its predecessor, the Zhenwu 810E. With 144 GB of GPU memory and an impressive interchip bandwidth of 800 GB per second, this chip positions Alibaba and its subsidiary T-Head to better compete in China’s burgeoning AI processor market, especially as Nvidia faces challenges in supplying advanced chips to the region.
The introduction of the Zhenwu M890 comes at a critical time when Chinese developers are increasingly restricted from accessing cutting-edge processors from Western firms due to export controls. As domestic demand for AI infrastructure rises, Alibaba’s chip could play a pivotal role in supporting its Qwen large language models and other AI applications. Analysts note that while the performance metrics of Alibaba’s chip are promising, they still lag behind those of leading Western competitors.
For market professionals, Alibaba’s advancements in AI chip technology signal a significant shift in the competitive landscape, highlighting the importance of domestic innovation in China’s tech sector amid geopolitical tensions.
Source: cnbc.com