Alibaba shares rise after it lands major customer for its AI chips

Alibaba After the Chinese state media reported that the e-commerce giant provided a great customer for artificial intelligence chips, the stocks rose on Wednesday.

According to a report by the China State publisher CCTV, China will use Alibaba’s AI accelerators from PingTouge or T-JAD semiconductor. Alibaba does not sell chips directly, but companies can effectively use the information processing power based on these semiconductors by purchasing Alibaba Cloud Services.

A person who knew the subject confirmed the accuracy of the CCTV report to CNBC.

Alibaba was not available to comment immediately when contacting CNBC.

Alibaba shares closed more than 5% in Hong Kong, and the company’s stock listed in the US increased by more than 2% in pre -market trade.

Alibaba’s information processing power will include chips from other domestic companies, including Metax and Biren Technology, by China Unicom, the country’s second largest telecommunication company, as part of a major new data center project in China.

The movement underlines the efforts of China to increase the use of its domestic semiconductors for AI at a time when NVIDIA’s access to the world’s largest economy is a flow.

Wednesday Financial times China’s internet regulator, China’s cyber space management, told companies to stop buying certain Nvidia AI chips. NVIDIA shares were approximately 1% lower in pre -market transactions.

Alibaba is one of China’s leading AI players. He developed his own AI models and is one of the largest cloud computing players locally. Last month, CNBC is also developing a brand new AI chip.

It is unclear whether China Unicom has used Alibaba’s latest chips. Information about the partnership of the two companies appeared after showing an advertising board containing details as part of a report on the new Sanjiangyuan data center in the Qinghai state of CCTV’s Telekom giant.