# Alibaba bets big on AI chips and data centers

> Alibaba unveiled a new AI chip and plans to expand global data center capacity to over 20 gigawatts by 2032, joining Western rivals in the race for AI infrastructure.
- Title: Alibaba bets big on AI chips and data centers · CNBC
- Summary: Alibaba unveiled a new AI chip and plans to expand global data center capacity to over 20 gigawatts by 2032, joining Western rivals in the race for AI…
- Keywords: alibaba, ai chips, data centers, zhenwu v900, alibaba cloud, ai infrastructure, business, finance, bets, big, chips, data
- Source: CNBC — https://cnbc.com/2026/09/22/alibaba-ai-alibabacloud-zhenwu-v900-.html
- Author: Jenny Lee,Evelyn Cheng
- Published: 2026-09-22T05:15:21+00:00
- Read time: 1 min
- Topics: alibaba, ai chips, data centers, zhenwu v900, alibaba cloud, ai infrastructure, business, finance
## Alibaba stock rises on AI announcements
Shares of Alibaba jumped around three percent in Hong Kong on Tuesday after the Chinese technology giant unveiled a new artificial intelligence chip and plans to expand its data center footprint.
## New Zhenwu V900 chip unveiled
At its Apsara Conference in Hangzhou, Alibaba introduced the Zhenwu V900, its next-generation AI chip that delivers three times the performance of its predecessor, the Zhenwu M890 released in May.
## Massive data center expansion planned
Alibaba announced plans to expand Alibaba Cloud's global data center capacity to more than twenty gigawatts by twenty thirty-two as part of a broader roadmap spanning chips, cloud infrastructure and AI models.
## Competing with Western tech giants
The announcements come as Nvidia, Meta and Huawei ramp up their AI infrastructure bets. Nvidia plans to support up to two gigawatts of AI infrastructure in Australia by twenty twenty-seven, while Meta is building a one-gigawatt data center in Alberta, Canada.
## Chip production and AI model roadmap
The Zhenwu V900 is scheduled for mass production and commercial release in the first quarter of twenty twenty-seven. Alibaba's existing Zhenwu chips are already used by more than six hundred fifty customers across automotive, finance, energy and manufacturing.
## CEO compares AI to electrification era
Eddie Wu, CEO of Alibaba Group, said machine thinking had an enormous growth runway, comparing today's AI development with the early stages of electrification. He added that AI coding is simply the light bulb of the machine intelligence era.

> AI coding is simply the light bulb of the machine intelligence era.
## Key takeaway

Alibaba announced a new AI chip and plans to expand data center capacity to over 20 gigawatts by 2032, stepping up competition with Western tech companies in AI infrastructure.