Alibaba Group said on Tuesday it was developing an AI model up to four times larger than the company’s flagship model and unveiled a next-generation AI chip it called China’s most powerful, sending shares up 5%.
The launch comes as Chinese technology companies race to develop domestic alternatives to Nvidia’s AI processors amid tightening US export curbs.
The announcements at Alibaba Cloud’s annual Apsara conference in the eastern city of Hangzhou underscore the Chinese technology giant’s push to build out every layer of its AI business.
These efforts range from foundation models and semiconductors to data centres needed to train and deploy increasingly powerful AI systems.
“The truly groundbreaking products of the Machine Intelligence era have not yet arrived,” however, said Chief Executive Eddie Wu, hailing the dawn of an era of comparable to the Industrial Revolution.
He predicted machines would eventually produce more than 1,000 times the “thinking” of all humanity, up from less than 3% today.
New model planned
Wu said Alibaba’s Qwen team plans to train a new model with 5 trillion to 10 trillion parameters, to tackle “more complex, longer-horizon tasks” as it pursues an artificial superintelligence, or one that surpasses human capabilities.
Alibaba’s current flagship, Qwen 3.8 Max, has 2.4 trillion parameters, which are a rough measure of an AI model’s size and capability.
In a separate statement, Alibaba said it is currently
training its next-generation model, Qwen 4, with future Qwen 4.5
and Qwen 5 models expected to scale up to 5 trillion to 10
trillion parameters.
The Qwen team had made “meaningful” progress in getting
models to improve themselves by identifying weaknesses, doing
experiments and generating training data with limited human
involvement, he added.
Alibaba also unveiled the Zhenwu V900, a new AI chip
developed by its T-Head semiconductor unit.
Wu said the processor delivers three times the performance
of its predecessor, the M890, and can be linked in clusters of
up to 500,000 chips to train and run the largest AI models.
The chip is set for mass production and commercial release
in the first quarter of 2027 and Wu said the company expected
“significant growth” in annual AI chip shipments. Alibaba
launched the previous-generation M890 chip in May.
Alibaba’s Hong Kong-listed shares surged 5.1% on Tuesday to
their highest in a month.
Wu also set a target for Alibaba Cloud’s global data centre
capacity to surpass 20 gigawatts by 2032.
Customer demand for AI was “exceptionally robust” and was
accelerating Alibaba Cloud’s revenue growth, he added, though
supply chain constraints limit the pace of expansion.
“The industry’s mid-to-long-term demand far outpaces our
supply capabilities,” Wu said, adding that Alibaba Cloud would
begin bringing its AI supernodes online at commercial scale this
quarter.
He likened AI coding to the light bulb of the electrical age
– an early application rather than the breakthrough product.
Source: Khaleej Times