WSJ Tech News Briefing TNB Tech Minute: Alibaba Creates AI Chip to Help China Fill Nvidia Void
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Aug 29, 2025 Alibaba is stepping up its game with a new AI chip, aiming to fill the gap left by regulatory challenges faced by NVIDIA. Their financial results reveal fierce competition in China's food-delivery sector. Meanwhile, Dell Technologies is reporting a positive revenue outlook, driven by rising AI demand, despite a cautious earnings forecast. The tech landscape is shifting rapidly, highlighting the impacts of innovation and competition.
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Alibaba Builds A Versatile AI Chip
- Alibaba has developed a new, more versatile AI chip now in testing to handle broader AI inference tasks.
- The chip aims to fill gaps after NVIDIA faced regulatory barriers to selling advanced chips in China.
Domestic Chips Rise As NVIDIA Sales Stall
- Alibaba and other designers are stepping in after NVIDIA ran into regulatory barriers to selling products in China.
- Alibaba, China's biggest cloud company, is replacing some foreign chip dependency with domestic designs.
Delivery Price War Hits Alibaba Profitability
- Alibaba's results show pressure from a delivery-price war with Meituan and JD.com hurting a key profitability metric.
- Adjusted net profit fell 18% to 33.51 billion yuan for the quarter amid aggressive competition.