Alibaba has unveiled the Zhenwu V900, a new AI chip it says delivers three times the performance of its predecessor, the M890. The launch took place at the 2026 Apsara Conference in Hangzhou.

The chip was developed by T-Head, Alibaba's semiconductor unit. According to the company, it carries 216 gigabytes of memory and 1,200 gigabytes per second of chip-to-chip bandwidth. It is designed for both training and running AI models.

Alibaba CEO Eddie Wu said clusters based on the V900 can link up to 500,000 chips for large AI workloads. The company also set a target of expanding Alibaba Cloud's data-centre capacity to more than 20 gigawatts by 2032.

Mass production and commercial release are scheduled for the first quarter of 2027. The move is part of China's push to reduce dependence on foreign chipmakers such as Nvidia amid US export curbs.

Hong Kong-listed shares climbed 5.1 percent on September 22 after the announcement, their strongest close in a month, one market report noted. The company also says demand for its AI chips is growing significantly.