Alibaba and China Telecom Launch AI Data Center Powered by Domestic Chip Technology

LootboxPhobia · 2026-04-08T11:58:51+00:00

Alibaba and China Telecom launched a data center in Shaoguan, Guangdong, powered by Alibaba's independently developed Zhenwu AI semiconductor chips. The data center is equipped with 10k chips, supporting AI models with hundreds of billions of parameters, and is expected to expand to 100k chips for use in multiple industries such as healthcare. This move is part of Chinese companies accelerating the development of domestically produced chips.

LootboxPhobia

2026-04-08 11:58:51

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Investing.com - Alibaba and China Telecom announced on Tuesday that they will launch a data center in Southern China powered by Zhenwu AI semiconductor chips independently developed by Alibaba.

The facility is located in Shaoguan, Guangdong Province, and will be equipped with 10k Alibaba Zhenwu chips, designed specifically for AI training and inference. The data center can support AI models with trillions of parameters, and is expected to scale up to the size of 100k chips.

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Alibaba designs the chips through its T-Head division. The company, headquartered in Hangzhou, is one of China’s largest cloud computing service providers, and sells AI models through its cloud computing division—one of its fastest-growing businesses in recent quarters.

China Telecom and Alibaba said the computing cluster can be applied across multiple industries, from healthcare to advanced materials.

The rollout comes as Chinese companies accelerate efforts to develop domestic chip substitution solutions. The United States has restricted China’s access to key semiconductor technologies, including Nvidia’s AI chips.

Last month, a computing cluster built with Huawei Ascend 910C AI chips went live in China.

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