Alibaba strengthens AI strategy with next-gen RISC-V processor

Alibaba has introduced its next-generation XuanTie C950 processor, a 5-nanometer chip designed to support advanced artificial intelligence systems, according to a company blog post.

The chip was revealed at an internal conference hosted by DAMO Academy, the company’s research arm. 

Built on the open-source RISC-V architecture, the 3.2 GHz server processor is described as one of the most powerful RISC-V CPUs developed to date.

Reports from Chinese media indicate that the new chip delivers performance more than three times faster than its predecessor, the XuanTie C920. However, Alibaba has not disclosed which manufacturer produced the chip.

The company highlighted that the open-standard RISC-V framework allows developers greater flexibility to customise chip instructions and optimise performance for AI workloads, without the high licensing costs associated with traditional architectures. 

This adaptability is particularly valuable for the development of agentic AI systems.

Alibaba has been expanding its semiconductor efforts through its T-Head division, focusing on chips for AI training, inference, and cloud computing. 

The XuanTie series is primarily aimed at powering high-performance cloud systems and AI-driven applications.

The announcement aligns with Alibaba’s broader push into AI, including the recent launch of its enterprise-focused platform, Wukong, designed to support AI agent workflows. 

The company has also introduced an international version called Accio Work, which enables automated business operations for small and medium-sized enterprises.

In addition, Alibaba has reorganised its AI teams under a new initiative called Token Hub, aimed at strengthening its enterprise AI ecosystem.

The move comes as competition intensifies in China’s AI sector, with companies facing pressure from falling token prices and increasing demand for more efficient, cost-effective AI solutions.