Alibaba Group Holding Ltd. launched the XuanTie C950, a 5-nanometer processor built on open-source RISC-V architecture. The hardware targets AI inferencing in data centers and natively supports large AI models. This new chip performs more than three times faster than its predecessor.
Alongside the hardware, Alibaba introduced Accio Work, an enterprise-level AI platform. The service provides a plug-and-play AI taskforce specifically for small and medium-sized businesses.
Morgan Stanley reiterated its Overweight rating and $180 price target following the announcement. Analysts view the move as a strategic effort to strengthen Alibaba's semiconductor position and address profitability concerns regarding its heavy AI and cloud investments.