Alibaba Unveils New AI Chip to Rival Nvidia’s China Offerings
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The launch comes as the e-commerce giant prepares to spin off the semiconductor unit amid a wave of listings by domestic chipmakers seeking capital to weather U.S. sanctions. Photo: VCG
Alibaba Group Holding Ltd.’s chip arm has launched a new artificial intelligence (AI) processor, positioning it between Nvidia Corp.’s A800 and H20 as the group prepares a semiconductor spinoff amid China’s AI chip boom.
According to information posted on T-Head’s website on Thursday, the new chip integrates AI training and inference capabilities and is identified as the PPU model previously glimpsed in a CCTV broadcast in September 2025. In terms of hardware parameters, the processor sits between Nvidia’s A800 and H20, the two modified chips the U.S. company released to comply with export controls targeting China.
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Explore the story in 30 seconds
- Alibaba’s T-Head launched the Zhenwu 810E AI processor, positioned between Nvidia’s A800 and H20 in performance and memory, and already widely deployed within Alibaba Cloud.
- Alibaba is preparing to spin off T-Head, with plans for an independent IPO amid a surge in domestic chipmaker listings and strong investor enthusiasm.
- Domestic GPU suppliers like T-Head and Kunlunxin are gaining traction, though Nvidia remains dominant among China’s cloud giants.
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Who’s Who
- Alibaba Group Holding Ltd.
- Alibaba Group Holding Ltd.'s chip arm, T-Head, launched a new AI processor, the Zhenwu 810E, positioned between Nvidia's A800 and H20. This strengthens Alibaba's competitiveness in the Chinese AI chip market. The e-commerce giant is planning to spin off its semiconductor unit, T-Head, which saw its PPU model achieve the highest shipment volume among domestic GPUs in 2025.
- Nvidia Corp.
- Nvidia Corp. is a key player in the AI chip market globally. The company has released modified chips, the A800 and H20, to comply with export controls targeting China. Alibaba's new AI processor is positioned between Nvidia's A800 and H20 in terms of hardware parameters, with some specs matching or exceeding Nvidia's offerings. Despite advancements from domestic alternatives, Nvidia remains a primary choice for cloud giants due to its performance and ecosystem maturity.
- Alibaba Cloud
- Alibaba Cloud is utilizing Alibaba's self-developed Zhenwu 810E AI processors within its data centers. These processors, developed by Alibaba's chip arm T-Head, support complex tasks like language and multimodal model training and inference, as well as autonomous driving development. This strategic move strengthens Alibaba Cloud's capabilities, especially in a competitive landscape where domestic alternatives to Nvidia's chips are gaining traction.
- Baidu Inc.
- Baidu Inc. is mentioned in the article as having announced on January 2 that its affiliate, Kunlunxin, filed for a Hong Kong listing. Baidu stated that Kunlunxin would remain a subsidiary after the spinoff.
- Kunlunxin
- Kunlunxin, an affiliate of Baidu Inc., has filed for a Hong Kong listing. It aims to remain a subsidiary of Baidu following the spinoff. This move is part of a trend among Chinese chipmakers seeking capital amid U.S. sanctions and a booming domestic AI chip market. Kunlunxin is positioned as a domestic alternative to Nvidia's offerings.
- Moore Threads Technology Co. Ltd.
- Moore Threads Technology Co. Ltd. (688795.SH) recently listed on Shanghai's STAR Market on December 5. The company experienced a significant stock price surge of 425%, reaching a market capitalization of 277.4 billion yuan (nearly $40 billion) amid a trend of domestic chipmakers seeking capital through IPOs.
- Metax Integrated Circuits (Shanghai) Co. Ltd.
- Metax Integrated Circuits (Shanghai) Co. Ltd. (688802.SH) is a Chinese chipmaker. It recently debuted on the STAR Market on December 17th. Since its listing, the company's stock has surged by 583%, reaching a market valuation of 225.7 billion yuan. This indicates significant investor enthusiasm for domestic semiconductor firms.
- Shanghai Biren Technology Co. Ltd.
- Shanghai Biren Technology Co. Ltd. is a Chinese semiconductor company. Its shares have risen 80% since its listing in Hong Kong on January 2nd, achieving a market capitalization of HK$84.3 billion ($11 billion).
- Shanghai Iluvatar CoreX Semiconductor Co. Ltd.
- Shanghai Iluvatar CoreX Semiconductor Co. Ltd. listed in Hong Kong on January 8. Following its listing, the company's shares increased by 19%, resulting in a market capitalization of HK$42 billion (approximately $5.37 billion USD).
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What Happened When
- 2018：
- T-Head was established as Alibaba’s in-house silicon design arm.
- 2019：
- T-Head released the Hanguang 800 AI inference chip.
- 2020：
- T-Head began developing general-purpose GPUs for AI.
- Early 2023：
- T-Head completed research and scenario verification for its GPUs.
- September 2025：
- Alibaba's PPU model was glimpsed in a CCTV broadcast.
- December 5, 2025：
- Moore Threads Technology Co. Ltd. (688795.SH) listed on Shanghai’s STAR Market.
- December 17, 2025：
- Metax Integrated Circuits (Shanghai) Co. Ltd. (688802.SH) listed on Shanghai’s STAR Market.
- January 2, 2026：
- Baidu announced that its affiliate Kunlunxin filed for a Hong Kong listing; Shanghai Biren Technology Co. Ltd. listed in Hong Kong.
- January 8, 2026：
- Shanghai Iluvatar CoreX Semiconductor Co. Ltd. listed in Hong Kong.
- Around January 22, 2026：
- A source told Caixin that Alibaba plans to support T-Head’s independent listing.
- January 29, 2026：
- Alibaba T-Head officially launched a new AI chip, identified as the PPU model.
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