Alibaba Group Holding Limited (BABA) moved higher in pre-market trading after announcing a large-scale AI computing deployment in China. The stock rebounded to $127.89, up 6.80%, following a prior close at $119.72, down 2.12%. The move followed new developments in domestic AI infrastructure expansion across China.
Alibaba Group Holding Limited, BABA
Alibaba Group Holding Limited accelerated its AI strategy with a 10,000-card computing cluster powered by Zhenwu chips. The system operates from a Shaoguan data center in Guangdong province in partnership with China Telecom. The deployment marks the first large-scale Zhenwu-powered project in the Greater Bay Area.
The cluster delivers ultra-low latency of four microseconds and functions as a unified supercomputer. It supports training models with hundreds of billions of parameters across multiple industries. Alibaba reported a 30% improvement in training and inference efficiency.
The company has already deployed the system in healthcare and advanced manufacturing environments. Small and medium enterprises can access computing resources through China Telecom’s platform. Alibaba plans to scale the cluster to 100,000 cards to improve cost efficiency and performance.
Huawei Technologies also launched a similar 10,000-card cluster using Ascend 910C chips in Shenzhen. The rollout highlights China’s coordinated effort to expand domestic computing power rapidly. Furthermore, multiple regions continue building independent AI infrastructure aligned with national priorities.
Beijing has prioritized intelligent computing infrastructure in its latest five-year plan. The government aims to increase high-performance computing capacity and strengthen domestic supply chains. Consequently, local authorities in cities like Shenzhen and Shanghai are investing in large-scale AI ecosystems.
China’s computing power reached 962,000 petaflops by mid-2025, representing about 21% of global capacity. Growth accelerated by 73% year-on-year as demand for AI workloads increased. Besides, new clusters emphasize scalable architecture rather than relying solely on advanced chip performance.
China’s push follows restrictions on advanced semiconductor exports from the United States. Companies like NVIDIA have faced export limits affecting AI chip access in China. As a result, domestic firms have accelerated in-house chip design and infrastructure development.
Global competitors including Microsoft and Meta Platforms continue investing heavily in AI infrastructure. These firms allocate large capital toward data centers and advanced computing systems. Chinese companies focus more on targeted deployment in industrial and enterprise applications.
Alibaba continues expanding its full-stack AI capabilities through its T-Head semiconductor division and cloud business. The company integrates chip design, computing infrastructure, and AI model deployment under one ecosystem. The latest cluster strengthens its position in China’s evolving AI landscape while supporting broader industry adoption.
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