Alibaba expects higher gross margin and profitability by swapping purchased chips for its own

Alibaba expects higher gross margin and profitability by swapping purchased chips for its own

Alibaba deploys Zhenwu M890 (3× performance) to replace Nvidia, using 470k T-Head shipments to lift cloud margins from 34.5%. Vertical integration amid US GPU bans forces competitors toward in-house semiconductors, reshaping AI infrastructure competition and pricing.