Alibaba is expanding its artificial-intelligence infrastructure after unveiling a new AI chip called the Zhenwu V900. 

The Chinese technology company is also planning a significant expansion of its data-center capacity as it seeks to strengthen its position in China’s rapidly developing AI industry. 

The announcement comes as Chinese technology companies increase investment in domestic AI infrastructure. 

Alibaba operates one of China’s largest cloud-computing businesses, giving it a direct role in supplying computing power to companies developing and deploying AI applications.

The company’s investment is part of a broader push by Chinese technology firms to reduce dependence on foreign AI hardware. 

Restrictions on advanced semiconductor exports have increased pressure on Chinese companies to develop alternative technologies and strengthen domestic supply chains.

Alibaba’s shares rose in premarket trading following the announcement, contributing to wider investor interest in companies involved in AI infrastructure.

The company’s cloud division is also expected to remain an important source of growth as demand for AI computing increases.

The development highlights the growing competition between technology companies in the United States and China. 

Both markets are investing heavily in chips, data centers and AI software as businesses increasingly incorporate artificial intelligence into their operations.

Source: Investopedia.