What's Going On With Alibaba Shares Wednesday?
Alibaba shares rose 2.81% to $166.77 after securing China Unicom as a major client for its AI chips. The company signed a contract to deploy its "T-Head" AI accelerators in a new datacenter in northwestern China, competing with Huawei and Cambricon Technologies. Alibaba is investing approximately 380 billion yuan ($53.5 billion) over three years to enhance its AI infrastructure and reduce reliance on Nvidia's designs.
Alibaba Group Holding Limited BABA shares are trading higher Wednesday after reports indicating the company secured China Unicom as a major client for its artificial intelligence (AI) chips.
What To Know: According to Bloomberg, Alibaba has signed a contract with China Unicom — the country's No. 2 wireless carrier — to deploy its "T-Head" or Pingtouge AI accelerators in a new datacenter in northwestern China, alongside chips from MetaX and Biren Technology.
It is unclear how large Alibaba's deployment will be, but visuals show tens of thousands of its AI chips going into Unicom's datacenters. The technology is intended to compete with Huawei's Ascend series and chips from Cambricon Technologies.
Alibaba is investing heavily in AI infrastructure — setting aside about 380 billion yuan (roughly $53.5 billion) over three years — in part to reduce dependence on Nvidia's designs.
BABA Price Action: At the time of publication, Alibaba shares are trading 2.81% higher at $166.77, according to data from Benzinga Pro.
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