"Given that our chips still lag behind foreign counterparts and performance in various respects, we aspire to engage in more profound co-design with Alibaba's cloud infrastructure and the Qwen model to provide improved cost effectiveness."
"Our primary goal is to create AI capabilities that offer superior value for money."
"Developing its own chips gives Alibaba guaranteed supply of AI computing power, which is necessary given the unique circumstances currently facing the AI industry in China."
"Wu also thinks developing its entire stack will mean Alibaba can lower inferencing costs, and that doing so will mean the company's cloud can rake in plenty of profits as demand for AI services grows."
Alibaba's T-Head chipmaking business has shipped 470,000 AI chips, with CEO Yongming Wu admitting they are inferior to rival products. The company has developed several AI chips, including the Zhenwu 810E, which is competitive with Nvidia's H20. Wu emphasized the importance of co-designing chips with Alibaba's cloud infrastructure to improve cost-effectiveness. He noted that developing proprietary chips ensures a guaranteed supply of AI computing power, especially in light of US export bans affecting the AI industry in China.
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