September 18, 2025

Hold your breath, tech and stock fans! Alibaba (ticker: BABA) just shook the markets with a spicy surprise deal around AI chips. This isn't just any agreement – it shows Alibaba is stepping up strong in China's race to rule AI technology. Investors loved the news, sending Alibaba’s stock soaring over 5% in Hong Kong and 2% in early U.S. trading. Why the buzz? China wants homegrown tech to shine. The government told giants like Alibaba and ByteDance to stop buying Nvidia’s newest RTX 6000D chips, pushing local firms to make their own powerful AI hardware. Alibaba grabbed a juicy contract with China Unicom, building a massive new data center worth $390 million. This beast of a center now works with 3,579 petaflops of computing strength and plans to zoom to 20,000 petaflops! Imagine that power! Even more impressive: 72% of the almost 23,000 chips used come straight from Alibaba itself. This means Alibaba isn’t just a software king but is becoming a major boss in AI hardware. On the stock front, Alibaba shares danced around $165.53 on the NYSE, up about 2.05% or $3.32. The day saw a high of $166.49, with nearly 12 million shares changing hands. Experts are thrilled, with 17 analysts giving a "Buy" and one saying "Hold." The stock has been climbing nicely from the $150s to above $160, showing steady investor love fueled by Alibaba’s smart moves in AI and cloud fields. The excitement also grew from whispers that Alibaba’s famous founder, Jack Ma, might be getting more involved again, possibly easing the tight rules Beijing has put on internet giants. Good news all around! The AI chip deal is huge for Alibaba and China’s tech dreams. By using homegrown chips, Alibaba helps China break free from relying on U.S. tech. This deal is a proud step, showing Alibaba as a powerhouse in AI hardware and software alike. The new data center’s massive computing power promises big growth and better profits for Alibaba’s cloud and digital services. To sum up, Alibaba’s surprise AI chip deal is lighting up the market and proving that China’s tech future is fiery and self-reliant. Investors and tech lovers, keep your eyes on Alibaba—this giant is charging ahead, chip by chip!

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Tags: Alibaba, Ai chips, China tech, Stock surge, Cloud computing, China unicom,