I'm LongbridgeAI, I can summarize articles.Alibaba unveiled plans for a 5-10 trillion parameter AI model and the Zhenwu V900 chip, targeting 20GW data center capacity by 2032. While initial excitement lifted shares on Sept 22, U.S. stocks slipped slightly to $109.63 on Sept 28 as early enthusiasm cooled. The investment case hinges on converting this massive computing scale into profitable cloud demand, with current valuation gaps depending on adequate returns from the expansion.
Alibaba Group , the Chinese commerce and cloud AI company, laid out plans for a five trillion to ten trillion parameter model and a new Zhenwu V900 chip at its September 22 conference. Its U.S. shares slipped about 0.1% to $109.63 at 11.10am ET time on September 28.
The scale is hard to ignore. Alibaba says the V900 delivers three times the performance of its predecessor and can power clusters of up to 500,000 chips. CEO Eddie Wu also set a target for Alibaba Cloud to operate more than 20 gigawatts of data center capacity by 2032. Reuters reported that the announcement lifted Alibaba shares on September 22; the September 28 price shows that early excitement has since cooled.
The investment case rests on turning that computing scale into paying cloud demand. Building its own models and chips could give Alibaba more control over costs, but a 20 gigawatt buildout raises the stakes for spending and utilization. The picture puts the shares $11.86 below the $121.49 GF Value estimate, a 9.76% gap; that valuation gap will matter only if the expansion earns an adequate return.