Alibaba created a new AI chip to compete with Nvidia.

Market Trends & Competition - Alibaba reportedly developed a new AI chip to compete with Nvidia, driven by US restrictions [1] - China aims to reduce reliance on foreign tech, favoring homegrown technology stacks [1][2] - The Chinese market presents a larger revenue opportunity for domestic chip makers due to the desire to replace Nvidia chips [2] Strategic Focus - China's system appears to prioritize scale over profitability, a trend observed for over a decade [2]