Alibaba Rises After Unveiling V900 Chip, 20-Gigawatt Cloud Goal

Alibaba shares climbed Tuesday after the company unveiled its Zhenwu V900 AI chip and set a goal of exceeding 20 gigawatts of data-center capacity by 2032. Hong Kong-listed shares closed about 2% higher, while its U.S.-listed shares rose more than 3% in premarket trading.

Chief Executive Eddie Wu introduced the chip at Alibaba’s annual Apsara Conference in Hangzhou. The company says the V900 delivers three times the performance of its predecessor, the Zhenwu M890.

Alibaba’s chips power AI training and inference, the computing used to generate responses from trained models. The company said its data centers serve both its own AI work and cloud customers.

The 20-gigawatt target reflects Alibaba Cloud’s plan to expand infrastructure as demand for AI computing grows. Wu said global shortages across the data-center supply chain are already limiting how quickly the company can add capacity.

Alibaba also outlined plans to train an AI model with five trillion to 10 trillion parameters. Its Qwen3.8-Max model, the largest in the company’s Qwen series, has 2.4 trillion parameters, according to the company.

The expansion comes with a financial trade-off. Alibaba’s net profit fell 75% in its latest reported quarter, with heavy AI investment weighing on margins, even as AI and cloud revenue grew.

The chip’s performance claims come from Alibaba and have not been independently verified. Investors will be watching for evidence that the V900 can be produced at scale and that added data-center capacity brings in enough cloud revenue to justify the investment.