Alibaba Unveils New AI Chip, Upgrades AI Model

Dow Jones05-20 11:27
 

By Tracy Qu

 

Alibaba has unveiled a new artificial intelligence chip as well as an update of its AI model, as the Chinese tech giant aggressively pursues its AI ambitions on multiple fronts.

The Hangzhou-based company released a new chip, the Zhenwu M890, which delivers three times the performance of its predecessor Zhenwu 810E, at a conference in Hangzhou on Wednesday.

These capabilities make it "exceptionally" suited for complex agentic AI workloads, which demand extensive working memory for context retention and high-speed communication, Alibaba said.

Alibaba also released an update of its large language model, called Qwen3.7-Max, which is engineered for more advanced agent coding and complex reasoning.

Alibaba's management said in a recent earnings call that scaling up the deployment of its in-house chips represent "the highest value for money compute power," which will improve Alibaba Cloud's margins.

Alibaba's chip unit has achieved widespread industrial adoption of its AI chips, with over 560,000 Zhenwu units delivered to date, Alibaba said.

Alibaba's AI investment has significantly dragged on its profitability in recent quarters but the company has expressed confidence that the investment will pay off.

The company expects AI-related product revenue to count for 50% of cloud unit's external revenue in about a year, and become the primary driver of revenue growth for that unit, chief executive Eddie Wu said earlier this month.

 

Write to Tracy Qu at tracy.qu@wsj.com

 

(END) Dow Jones Newswires

May 19, 2026 23:27 ET (03:27 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment