Alibaba jumps 5% on new AI chip and trillion-parameter model

Alibaba Group announced on Tuesday that it is developing an artificial intelligence model up to four times larger than its current flagship system. The company also unveiled a new AI chip called Zhenwu V900, which it described as the most powerful in China. Following the announcements at Alibaba Cloud's annual Apsara conference in Hangzhou, Alibaba shares listed in Hong Kong rose 5.1%, reaching their highest level in a month.

CEO Eddie Wu stated that the Qwen team plans to train a model featuring between 5 trillion and 10 trillion parameters to handle more complex tasks. Alibaba's current flagship model, the Qwen 3.8 Max, has 2.4 trillion parameters. Wu noted that the team made significant progress in enabling models to improve on their own with limited human involvement.

The company also introduced the Zhenwu V900 processor, developed by its T-Head chip unit. According to Wu, the chip delivers triple the performance of its predecessor, the M890 released in May, and can link into clusters of up to 500,000 chips. Alibaba scheduled mass production and commercial launch for the first quarter of 2027. Wu added that Alibaba Cloud aims for global data center capacity to exceed 20 gigawatts by 2032.