<div id="readability-page-1"><div>Alibaba (BABA, Financials) has launched a new artificial intelligence data center powered by its own semiconductors, marking a significant step in China's push to build domestic chip capabilities.The facility was built alongside China Telecom and has 10,000 of Alibaba's own Zhenwu AI processors. It can handle both AI training and inference workloads. The data center can handle models with hundreds of billions of parameters, which shows how big China's plans are for AI infrastructure.The debut comes at a time when Chinese tech companies are working harder to make their own semiconductors instead of relying on foreign ones, especially since U.S. export restrictions make it harder for businesses like Nvidia to get advanced processors. Alibaba has spent a lot of money into its chip design section and its cloud computing business, which is still one of its fastest-growing areas.The company also said it will make changes to its own structure to speed up AI development. For example, it would form a new technology council overseen by CEO Eddie Wu.Over time, the data center is expected to grow a lot, possibly to 100,000 chips. Investors will keep an eye on Alibaba to see if it can turn its increasing AI infrastructure into steady cloud revenue growth and a better position in the market.</div></div>

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Alibaba has launched an AI data center using its own Zhenwu AI processors, in collaboration with China Telecom. This facility can manage extensive AI workloads and reflects China's ambition to enhance domestic chip production amid U.S. export restrictions. Alibaba is investing heavily in chip design and cloud computing, aiming to accelerate AI development through a new technology council led by CEO Eddie Wu. The data center is projected to expand significantly, potentially increasing to 100,000 chips, as investors watch for growth in cloud revenue and market positioning.

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Alibaba Builds AI Data Center With Own Chips