Alibaba is working on a chip designed for AI applications, focused on inference, without the intention of selling it abroad, in the context of tensions between the USA and China.

Alibaba is developing a new chip for artificial intelligence applications, focusing on inference, but without the intention to sell it externally. This effort comes amid tensions with the United States and increasing demand for AI solutions. Alibaba has announced investments of $53 billion in AI infrastructure over the next three years. At the same time, the Chinese AI chip market is expanding, with rivals like Baidu and Huawei also developing semiconductors. Alibaba's shares have risen by 12% as a result of these announcements.