Alibaba Unveils New AI Chip to Reduce Reliance on Nvidia, WSJ Reports Say

Alibaba has developed a new artificial-intelligence chip aimed at easing China’s dependence on Nvidia hardware, according to the Wall Street Journal. The Journal reports the processor is more versatile than Alibaba’s earlier in-house parts and is positioned for AI inference across its cloud services. Alibaba was long one of Nvidia’s biggest customers, but U.S. export controls have constrained sales of advanced American chips into China.

In July, President Donald Trump allowed Nvidia to resume exports of its China-compliant H20 chip, the Journal noted. Soon after, Beijing advised companies not to purchase the part, citing potential security concerns—allegations Nvidia disputes. Industry insiders told the Journal that China remains far from matching the most advanced U.S. processors, in part because Chinese factories face strict limits on access to cutting-edge chip-making tools.

China’s domestic ecosystem is nonetheless racing to fill the gap. Shanghai-based MetaX introduced a processor it says could replace Nvidia’s H20, highlighting larger on-chip memory that may benefit certain AI tasks despite higher power draw; the company said this week it is preparing for mass production. Beijing-based Cambricon Technologies posted second-quarter revenue of about $247 million on strong orders for its Siyuan 590 AI chip and cautioned investors after a rapid share-price rally; shares fell around 6% on Friday, but the company’s market capitalization remains above $87 billion, the Journal reported.

What’s next: Watch for an official Alibaba announcement with the chip’s name, manufacturing details, software stack, and independent benchmarks to clarify performance and availability.