Alibaba to Launch AI Chips

Alibaba Group Holding Ltd. (NYSE: BABA) announced on Wednesday that it will develop its own artificial intelligence chips for cloud computing, internet-connected devices, and other sectors. The Company said it will set up a dedicated chip subsidiary and aims to launch in the second half of 2019.

Alibaba’s Chief Technology Officer, Jeff Zhang, said the e-commerce Company’s advantages in algorithms and data put it in “a unique position to lead real technology breakthroughs in disruptive areas, such as quantum and chip technology.”

Alibaba’s aggressive drive to develop its own semiconductors comes as China’s government looks to raise the quality of home-made chips to help propel high-tech domestic industries from cutting-edge transport to AI healthcare systems.

Alibaba has previously made several investments in chipmakers. Earlier this year, it bought C-Sky, a Chinese chip design firm. Alibaba Executive Chairman Jack Ma has been vocal about addressing China’s heavy reliance on foreign-made chips.

“The market for chips is controlled by America … and suddenly if they stop selling, what that means, you understand,” Ma told university students in Tokyo in April. “That’s why China, Japan and any country — you need core technologies.”

Ma’s remarks came shortly after the US Commerce Department blocked American companies from selling parts to ZTE, a Chinese tech company that relied on U.S. suppliers, including chipmakers, to manufacture smartphones and telecommunications equipment. The ban — since lifted with strict conditions — brought ZTE to its knees and highlighted the risks of China’s dependence on foreign-made technology.

4 Comments
  1. Justin Pulitzer 3 months ago
    Reply

    Entered long $BABA stock and Jan $160 calls.

  2. Steven Feffer 3 months ago
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    $baba very good chart here. weekly chart now seen two bottom stick green candle on support of cloud bottom AND this week higher low. may see 50% chance bottoming here BUT monthly now @ mid BB so need Oct to consolidate. NO reason to play China stocks now until clear signal.

  3. Gustavo Ramirez 3 months ago
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    Jack Ma: Alibaba is no longer planning to create 1 million U.S. jobs

  4. Welson C. 3 months ago
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    $BABA Daily? Weekly Doomed or Domed? Ba Ba or Ma Ma, nothing but an actor that will never payback the big loans he got from U.S banks ? Cooked books at their best IMO.. Remember, Chinese company’s are un-electable, un-accountable, un-auditable.. Time will tell the true tales.

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