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StocksMedium•8 April 2026•

1 min read

Alibaba and China Telecom Launch AI Data Center Powered by 10,000 Proprietary Chips

Key Facts

1Alibaba and China Telecom launched a data center designed for AI training and inferencing.

2The data center is powered by 10,000 of Alibaba's self-developed Zhenwu AI semiconductors.

3The move is part of China's push to ramp up AI capabilities and reduce reliance on foreign technology.

Alibaba, in collaboration with China Telecom, has officially launched a large-scale data center dedicated to AI training and inferencing. The facility is powered by 10,000 of Alibaba's self-developed Zhenwu AI semiconductors, marking a significant milestone in the company's hardware capabilities. This strategic move aims to strengthen China's domestic AI infrastructure amid ongoing global technological competition and export curbs. By utilizing proprietary chips, Alibaba is actively working to mitigate the impact of international restrictions on high-end semiconductor imports. Analysts view this development as a bullish signal for Alibaba's cloud computing division and its long-term growth prospects in the AI sector. The partnership underscores the increasing synergy between major Chinese tech firms and state-owned telecommunications providers to secure technological self-sufficiency.

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