Signage at the headquarters of Alibaba Group Holdings Ltd. in Hangzhou, China, on Wednesday, March 24th, 2021.

Qilai Shen | Bloomberg | Getty Images

GUANGZHOU, China – Chinese e-commerce giant Alibaba launched a new server chip on Tuesday to boost its cloud computing business and against US rivals like Amazon.

The processor called Yitian 710 is being built into new servers called Panjiu.

The chip and servers are not sold directly to customers. Instead, Alibaba’s cloud computing customers are buying services based on this latest technology. These servers are designed for applications and storage with artificial intelligence.

The company did not say when the services based on the latest chips and servers will be available to customers.

Alibaba will not manufacture the semiconductor, but instead develop it.

This is a trend among Chinese companies. Huawei has developed its own smartphone chips and Baidu this year raised money for a independent semiconductor business. US..

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