A December 22, 2025, report indicates Alibaba Group is considering a major purchase of Advanced Micro Devices (AMD) advanced AI GPUs. The potential order includes 40,000 to 50,000 of AMD’s MI308 AI accelerators.
This potential order follows Alibaba’s previously reported interest in Nvidia H200 chips, underscoring its commitment to expanding AI infrastructure. Alibaba prioritizes its cloud and AI divisions as its main growth engine.
Securing high-performance chips is crucial for training AI models and delivering enterprise-level AI services, enhancing its competitive stance in China’s rapidly growing AI sector. This reported hardware investment executes its broader technology platform strategy.
Following the news, AMD shares rose 3% in premarket trading. Alibaba’s stock saw a fractional increase.
The positive movement for AMD reflects the significance of the potential order. The more muted reaction for Alibaba suggests investors largely anticipated these strategic AI investments, aligning with the company’s stated direction.