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Key Facts about Alibaba’s AI Development
Alibaba is developing its own AI technology to compete with Nvidia, recently unveiling a processor with performance specs matching Nvidia’s H20 GPU, which is approved for sale overseas. The new chip is priced approximately 40% lower than Nvidia’s offering. This move comes amid rising trade tensions and a push for domestic capabilities in China’s AI hardware market.
As of Q2 2025, Alibaba’s revenue from cloud computing, including AI, accounted for 15% of its total sales and saw a year-over-year growth of 26%. Analysts predict that China’s AI industry could reach a value of $1.4 trillion by 2030, enhancing GDP growth by 20 to 30 basis points due to increased adoption within the country.
Notably, China Unicom has placed orders for Alibaba’s T-Head processors for a new data center in Qinghai, indicating strong demand even before mass production begins.
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