Alibaba shares climbed 3% following the debut of its Zhenwu V900 AI chip and a long-term data center expansion plan that Citi analysts suggest could significantly boost future cloud revenue.
Alibaba unveiled a new AI chip and announced a major data centre expansion, with shares rising 2-3% and Citi projecting significantly higher cloud revenue.
Alibaba Group unveiled its powerful Zhenwu V900 AI processor and announced a massive data center expansion targeting 20 gigawatts by 2032. CEO Eddie Wu highlighted the chip's triple-performance leap, while Citi analysts projected the infrastructure push could drive external cloud revenue to $160 billion by fiscal 2033.
The Zhenwu V900 is described by Alibaba as China's most powerful AI chip, offering three times the performance of the previous generation and supporting clusters of up to 500,000 units for training large-scale AI models.