Alibaba releases faster AI chip to reduce dependence on suppliers

LootboxPhobia · 2026-03-24T15:49:31+00:00

Alibaba has launched the Xuantie C950, an AI chip based on the RISC-V architecture, with performance increased threefold and supporting various large models. Morgan Stanley pointed out that this chip reduces dependence on third parties, enhances production capacity and cost efficiency, while also alleviating geopolitical and regulatory risks.

LootboxPhobia

2026-03-24 15:49:31

Abstract generation in progress

Investing.com – Alibaba has launched its next-generation AI chip, the XuanTie C950, a 5-nanometer processor based on the open-source RISC-V chip architecture.

This new chip’s performance is more than three times that of its predecessor and natively supports large models including Qwen3 and DeepSeek V3.

Morgan Stanley noted that owning in-house chips can reduce reliance on third-party suppliers and enable tailored designs for specific applications. The firm added that internal chip development supports rapid capacity expansion during demand surges and improves cost efficiency by lowering the cost per token.

The investment bank also stated that developing proprietary chips can mitigate geopolitical risks related to U.S. export controls and reduce regulatory risks by aligning with government support.

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