Many of the biggest tech companies are no longer content to rely on outside chipmakers to power their AI ambitions. Instead, firms like Alphabet (GOOG) (GOOGL), Meta Platforms (META), Tesla (TSLA), and now Alibaba (BABA) are designing more of their own silicon in-house, a shift that can give them greater control over performance, cost, and supply at a time when demand for AI computing is exploding.
Alibaba is the latest example here. The Chinese tech giant and China Telecom are launching a data center in southern China that will use 10,000 of Alibaba’s Zhenwu chips, a clear sign that the company wants to build out its own AI infrastructure rather than depend entirely on foreign suppliers.
