<div id="readability-page-1"><p>Alibaba (BABA) is exploring a major purchase of advanced artificial intelligence (AI) chips from Advanced Micro Devices (AMD), <em>MLex</em> reported. The move reflects efforts by China's tech giants to expand their AI infrastructure amid strict U.S. export controls.</p><h3>Claim 50% Off TipRanks Premium and Invest with Confidence </h3><ul><li>Unlock  hedge-fund level data  and  powerful investing tools  designed to help you make smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  so your portfolio is always positioned for maximum potential</li></ul> <p>Sources familiar with the discussions said that Alibaba is evaluating an order of 40,000 to 50,000 units of AMD's MI308 AI accelerators, one of the company's newest data-center-class processors designed for large-scale AI workloads.</p> <p>For Alibaba, the timing is crucial. The company is rapidly expanding its cloud and AI capabilities. Also, it is strengthening the computing power behind its large language models and enterprise AI services, which require high-performance accelerators.</p> <h2><strong>Policy Shift Opens Door for AMD's MI308 Chips in China</strong></h2> <p>The potential order comes on the heels of President Trump's recent decision to allow limited GPU sales to China, reopening the door for companies such as Nvidia (NVDA), Intel (INTC), and AMD to resume exports under updated trade conditions.</p> <p>While the restrictions still cap performance levels, the policy shift has created a narrow but meaningful window for Chinese firms to access U.S. AI hardware.</p> <p>It must be noted that the MI308 is a version of AMD's AI chip designed to fall within U.S. export control performance limits for the Chinese market, meaning it is not AMD's most advanced chip.</p> <p>Adding to the momentum, AMD CEO Lisa Su met with China's Commerce Minister Wang Wentao last week to discuss the company's operations and potential cooperation in the region.</p> <h2><strong>Alibaba Is Looking Beyond Nvidia</strong></h2> <p>Alibaba Cloud has long relied on Nvidia GPUs to train and deploy its AI systems. However, U.S. regulations limiting the export of Nvidia's top-tier chips to China have led companies such as Alibaba, Tencent (TCEHY), and Baidu (BIDU) to rethink their hardware strategies.</p> <p>AMD has emerged as one of the few alternatives. Its MI300‑series accelerators have been gaining traction among U.S. cloud providers and enterprise customers, positioning AMD as a strong competitor in the AI chip market.</p> <p>If Alibaba moves forward with an order, it would mark a meaningful win for AMD in a market where Nvidia has long dominated. Even limited access to China's cloud giants represents a multi-billion-dollar opportunity, especially as AI workloads surge.</p> <p>Also, the deal would further validate AMD's progress in closing the performance gap with Nvidia.</p> <h2><strong>Is AMD a Buy or Sell Now?</strong></h2> <p>Turning to Wall Street, AMD stock has a Strong Buy consensus rating based on 31 Buys and nine Holds assigned in the last three months. At $281.78, the average AMD price target implies a 31.36% upside potential.</p></div>

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<p>Alibaba is considering purchasing 40,000 to 50,000 AMD MI308 AI chips to enhance its AI infrastructure, amid U.S. export controls. This move follows a policy shift allowing limited GPU sales to China. AMD's MI308 chips are designed to comply with export limits, offering Alibaba an alternative to Nvidia. The potential deal signifies a significant opportunity for AMD in the AI chip market, as Alibaba seeks to expand its cloud and AI capabilities.</p>

- Alibaba is considering a significant purchase of 40,000 to 50,000 MI308 AI accelerators from AMD to enhance its AI and cloud infrastructure, amidst U.S. export restrictions.  
- This potential order comes after a policy shift allowing limited GPU sales to China, providing a new opportunity for AMD to compete with Nvidia in the AI chip market.  
- If completed, the order would bolster Alibaba's AI capabilities and represent a substantial gain for AMD in a sector traditionally dominated by Nvidia.

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Alibaba (BABA) Considers Major Purchase of AMD AI Chips to Boost Computing Capacity