Story
Alibaba Reveals Plan for 10 Trillion Parameter AI Model, Unveils New Chip

Summary
The Chinese technology giant announced plans for a massive new artificial intelligence model and a proprietary AI chip, signaling a major push to compete in the global AI arms race.
Alibaba Group (NYSE: BABA) has announced a significant escalation of its artificial intelligence ambitions, revealing plans to train a new model with up to 10 trillion parameters and unveiling its latest proprietary AI chip. The move is part of a sweeping strategic push across AI models, custom hardware, and cloud data centers, positioning the company to compete at the highest level of the global AI industry.
A New Frontier in Model Scale
In an announcement on Tuesday, Chief Executive Eddie Wu outlined the company's plan to train a new AI model with a parameter count between 5 trillion and 10 trillion. The number of parameters is a key metric indicating the complexity and potential capability of an AI model, and a model of this magnitude would place Alibaba among the world's leaders in large-scale AI development.
This initiative underscores a broader trend among major technology firms to build increasingly powerful foundational models. For investors, it signals Alibaba's commitment to dedicating substantial resources to remain competitive in a capital-intensive race for AI dominance, both within China and globally.
AdIn-House Hardware and Infrastructure
To power these computationally demanding tasks, Alibaba also unveiled its new Zhenwu V900 AI chip. The company stated that the new processor is the most powerful in China and delivers three times the performance of its predecessor. Developing proprietary hardware is a critical strategy for mitigating supply chain risks and reducing reliance on foreign technology.
This vertical integration strategy extends to its cloud infrastructure. Alibaba said it aims for its global data center capacity to surpass 20 gigawatts (GW) by 2032. This long-term investment in infrastructure is designed to support both its internal AI development and the growing demand from its Alibaba Cloud customers for powerful AI computing resources.
Read next
More on Stocks
China's Public AI Labs Offer Sobering Preview of a Potential OpenAI IPO
The performance of two Hong Kong-listed AI firms, ZAI Co Ltd and MiniMax Group, provides a blueprint for a potential OpenAI or Anthropic listing, characterized by extreme valuations, massive cash burn, and significant volatility.

Binance Faces US Probe Over Potential Iran Sanctions Violations, Report Says
US federal prosecutors are reportedly investigating the world's largest cryptocurrency exchange, Binance, over concerns it may have violated sanctions against Iran. The probe focuses on whether the company knowingly failed to prevent illicit trading activity on its platform.

Alibaba Sells $500 Million Stake in ZTO Express, Shares Tumble
Alibaba Group has sold 25 million American depository receipts in logistics firm ZTO Express for $500 million in a block trade, prompting a sharp decline in ZTO's share price in both U.S. and Hong Kong markets.

Asian Energy Stocks Decline as Oil Prices Extend Multi-Day Slide
Energy companies across Asia saw share prices fall Tuesday, tracking a significant drop in crude oil benchmarks. Investors are weighing the potential for increased global supply amid diplomatic developments between the U.S. and Iran.