Alibaba unveils new AI chip as Nvidia access remains stalled
Alibaba launched its new AI chip, Zhenwu M890, claiming it delivers three times the performance of its predecessor while Nvidia’s access to China’s market remains stalled due to US export restrictions. The move underscores China’s push for domestic AI chip independence amid uncertainty over Nvidia’s H200 availability and declining US-China tech collaboration.
Alibaba introduced the Zhenwu M890 AI chip on Wednesday, touting it as three times more powerful than its predecessor, the Zhenwu 810E, which matches Nvidia’s H20 chip. The launch comes as Nvidia’s high-end H200 chip faces stalled market access in China due to US export controls, effectively cutting off Nvidia’s business in the country. The US-China rivalry over AI semiconductors has intensified, with Beijing accelerating domestic chip development after Washington restricted sales of advanced Nvidia chips over national security concerns. Reports suggest China has also blocked firms from purchasing Nvidia’s products, forcing companies to seek alternatives like Alibaba’s new chip. Zhang Guobin, founder of eetrend.com, called the timing of Alibaba’s announcement strategic, noting uncertainty over Nvidia’s H200 entry and a near-total halt to US-China tech trade. Nvidia CEO Jensen Huang, who visited Beijing with former President Donald Trump’s delegation, avoided direct discussions on the H200 but acknowledged China’s market protection policies. Alibaba’s Zhenwu M890 is positioned as a stable, long-term solution for domestic AI firms, reducing reliance on fluctuating US export policies. Zhang argued it proves China now has a ‘Plan B’ for high-end AI computing, though Nvidia still leads in performance. The company has already shipped over 560,000 Zhenwu-series chips to 400 customers, including automakers and financial institutions. Beyond chips, Alibaba has expanded its AI focus with its Qwen AI model family, surpassing one billion downloads since its 2023 launch. The Hangzhou-based firm, known for e-commerce platforms, is now prioritizing AI-driven innovation amid geopolitical tech tensions.
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