China accelerates drive to replace Nvidia with Alibaba, MetaX and Huawei chips

In a nutshell: China's tech sector is racing to replace foreign AI chips with domestic alternatives as US export controls restrict access to advanced processors. Alibaba, emerging startups like MetaX, and established firms such as Cambricon Technologies lead the push, supported by Beijing's heavy state investment in AI and semiconductors.

China's leading tech companies have long relied on American chipmakers such as Nvidia, but US export restrictions and rising geopolitical tensions have accelerated efforts to develop domestic alternatives. Alibaba, once a top Nvidia customer, now joins local developers in meeting the growing demand for chips that can power emerging AI services.Industry experts stress that China still trails the United States in producing chips that match the cutting edge of American design and manufacturing. Chinese factories face persistent shortages of advanced fabrication equipment, as US policy limits the transfer of leading-edge technology.

Amid these limitations, Alibaba has ...