BEIJING, March 24 (Reuters) - Alibaba (9988.HK) on Tuesday revealed its next-generation XuanTie C950 5-nanometer processor at an internal conference on Tuesday, local media reported, as the Chinese tech giant gears up for the shift towards agentic AI.<ul><li>The 3.2 GHz server chip, built using open-source RISC-V chip architecture, was billed as “the highest performing RISC-V CPU in the world” at a conference hosted by DAMO Academy, Alibaba’s research arm, according to the reports.</li><li>The chip performs more than three times faster than its predecessor, the XuanTie C920, the reports said.</li><li>The company did not reveal which fab manufactured the chip.</li><li>Alibaba did not immediately respond to an emailed request for comment.</li><li>Alibaba is accelerating in-house chip development through its T-Head semiconductor arm, primarily focusing on the Zhenwu 810E chip series for AI training and inference, while the XuanTie series is focused on high-performance cloud systems and agentic AI.</li><li>The move comes after Alibaba last week launched Wukong, its enterprise platform optimised for AI agent workflows, as companies and institutions throughout China adopt OpenClaw.</li><li>Its international equivalent, Accio Work, was launched on Monday. The agentic AI platform says it can autonomously run complex business operations for small and medium-sized enterprises.</li><li>The firm reorganised some of its AI-focused teams under the newly created Alibaba Token Hub earlier this month, which focuses on building AI work platforms for enterprises.</li><li>The business strategy shift comes as Alibaba finds new ways to ensure profitability as Chinese AI models’ token prices have dropped dramatically amid fierce domestic competition.</li></ul>

BABA

09988

159998

SOXL

SOXX

BABX

KBAB

BABO

- Alibaba has unveiled its next-generation XuanTie C950 5-nanometer processor, described as the highest performing RISC-V CPU, enhancing its focus on agentic AI.  
- The new chip operates at 3.2 GHz and outperforms its predecessor by more than three times, while the company accelerates in-house chip development through its T-Head semiconductor arm.  
- This shift in strategy comes amid a reorganization of AI teams and aims to address profitability challenges amid intense competition in the Chinese AI market.

Alibaba develops next-gen chip for agentic AI, Chinese media says