BABA Stock Spikes Overnight: Alibaba Takes On Nvidia With China’s Most Powerful AI Chip Yet

• The Zhenwu V900 delivers three times the performance of Alibaba’s previous-generation accelerator.

• Huawei and several other Chinese chipmakers are developing alternatives to Nvidia’s AI hardware.

• Alibaba is pairing its chip development with billions of dollars in AI infrastructure investment.

U.S.-listed shares of Alibaba Group Holding rose more than 2% in overnight trading late Monday after the Chinese tech giant unveiled a new AI accelerator that it says is China’s most powerful AI chip yet, intensifying competition with Nvidia as Beijing pushes to build a domestic alternative to U.S. technology.

Shares of the company were up nearly 3% in Hong Kong trading on Tuesday morning.

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The company’s T-Head semiconductor unit introduced the Zhenwu V900, which Alibaba CEO Eddie Wu said delivers three times the performance of its predecessor. The accelerator can be deployed in clusters of up to 500,000 chips to support the training of large, frontier AI models. Reuters reported that the chip is expected to enter mass production in early 2027.

Nvidia Faces Growing Chinese Competition

The launch adds another potential challenge for Nvidia, whose high-end AI accelerators have become the industry standard for training and running advanced models but face export controls in…