Alibaba advances AI infrastructure with next-gen chip. The Chinese tech giant unveiled its XuanTie C950 processor, a 5-nanometer server chip built on open-source RISC-V architecture. The new chip delivers over three times faster performance than its predecessor, the XuanTie C920, positioning it as the world's highest-performing RISC-V CPU. This development supports Alibaba's strategic pivot toward agentic AI, with the company launching enterprise platforms like Wukong to help businesses automate complex operations. The move reflects intensifying competition in China's AI sector, where token prices have declined significantly. By developing proprietary chips through its T-Head semiconductor arm, Alibaba aims to reduce licensing costs and customize AI workloads while maintaining profitability amid fierce domestic competition and margin pressures in the AI model market.
