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Alibaba launches AI chip triple the power of its predecessor, challenging Nvidia in China.

Market News
20 May 2026
Namrata Sen
View Source
Bullish
pluang ai news

Alibaba unveiled the Zhenwu M890, an AI chip with three times the performance of its previous model, featuring 144 GB GPU memory and 800 GB/s bandwidth. The chip aims to boost Alibaba and its subsidiary T-Head's position in China's AI processor market against competitors like Nvidia, Huawei, and Cambricon. Alibaba also announced the upcoming release of its next-gen AI model, Qwen3.7-Max, expecting AI-driven revenue to reach $4.42 billion by year-end. Despite advancements, analysts note Alibaba's chip still lags behind Western rivals in some key performance metrics.

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