Alibaba Unveils Zhenwu V900 Chip and 20GW Cloud Target

Alibaba Group unveiled a comprehensive full-stack AI strategy at the Apsara Conference in Hangzhou, detailing a roadmap for proprietary hardware, cloud infrastructure, and foundation models. To meet surging demand, CEO Eddie Wu set a target for Alibaba Cloud's global data center capacity to surpass 20GW by 2032. The company is also training the next-generation Qwen 4 model, with future iterations like Qwen 4.5 and Qwen 5 projected to scale up to 10 trillion parameters.

As part of a push for domestic technological independence amid U.S. export restrictions on advanced semiconductors, Alibaba Alibaba T-Head introduced the Zhenwu V900 AI processor. The chip offers three times the performance of its predecessor, the M890, and supports clusters of up to 500,000 chips. It is scheduled for mass production and commercial release in the first quarter of 2027.

Alibaba also introduced an agentic cloud strategy featuring AgentCore for enterprise management and a Context Engine for real-time data. Multimodal updates included Qwen3.8-LiveTranslate and Qwen-Audio-3.1-TTS-Next, alongside the launch of Qwen Intelligence for smartphones. Following these announcements, Alibaba's Hong Kong-listed shares rose 5.1% to a one-month high. These developments occur as Chinese leader Xi Jinping prepares for a state visit to Washington to meet with U.S. President Donald Trump to discuss AI competition, trade, and tariffs.