Alibaba Creates AI Chip To Help China Fill Nvidia Void

Alibaba, China's largest cloud-computing company, has developed a domestically manufactured, versatile inference chip to fill the gap left by U.S. restrictions on Nvidia's sales in China. The Wall Street Journal reports: Previous cloud-computing chips developed by Alibaba have mostly been designed for specific applications. The new chip, now in testing, is meant to serve a broader range of AI inference tasks, said people familiar with it. The chip is manufactured by a Chinese company, they said, in contrast to an earlier Alibaba AI processor that was fabricated by Taiwan Semiconductor Manufacturing. Washington has blocked TSMC from manufacturing AI chips for China that use leading-edge technology.

Private-sector cloud companies including Alibaba have refrained from bulk orders of Huawei's chips, resisting official suggestions that they should help the national champion, because they consider Huawei a direct rival in cloud services, people close to the firms said. China's biggest weakness is training AI models, for which U.S. companies rely on the most powerful Nvidia products. Alibaba's new chip is designed for inference, not training, people familiar with it said. Chinese engineers have complained that homegrown chips including Huawei's run into problems when training AI, such as overheating and breaking down in the middle of training runs. Huawei declined to comment.

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