Alibaba expects second-generation T-Head chip to tape out and enter production this year · TechNode

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.