Alibaba AI Chip Effort Quickens With Big Client China Unicom

Alibaba Group Holding Ltd. has secured a high-profile customer in China Unicom for its AI chips, suggesting the Chinese tech leader’s nascent semiconductor efforts are gaining traction in its home market.

China’s e-commerce leader has signed a contract with the country’s No. 2 wireless carrier to deploy its Pingtouge or “T-Head” AI accelerators, according to a video posted late Tuesday by state broadcaster CCTV. The chips will go into the mobile operator’s big new data center in northwestern China, alongside accelerators provided by rivals MetaX and Biren Technology Co. Alibaba’s shares gained 5.3% Wednesday to their highest level since 2021, joining a broad Chinese tech stock rally as investors piled into major AI-related names.