Alibaba and China Telecom have opened a new data center in southern China that runs on 10,000 of Alibaba’s Zhenwu AI chips. The facility, located in Shaoguan, Guangdong province, is designed to handle AI models with hundreds of billions of parameters, highlighting China’s growing focus on domestic technology.
Alibaba and China Telecom AI Data Center
Alibaba’s Zhenwu chips are built for AI training and inference, which serves as part of the company’s overall strategy to build independent semiconductor manufacturing capabilities.
US restrictions on AI chip exports since the ban on Nvidia products three years ago have accelerated the development of China’s domestic alternatives. The data center will begin its operations with 10,000 chips and plans to reach 100,000 chips in future expansion efforts.
Alibaba makes chips through its T-head division while building data centers and developing AI models that it sells through its cloud computing services.
The company considers cloud computing as its second fastest growing business unit, which will use the Shaoguan facility to provide support for health care and advanced materials and other regional applications.
Chinese companies focus on specific industries using local technology, but US technology companies plan to invest about $700 billion in artificial intelligence this year.
Additionally, Huawei’s computing cluster, which uses Ascend 910C chips, reflects China’s national strategy that aims at AI self-reliance and technological dominance through its recent development initiatives.
