Alibaba and Baidu shift to homegrown chips for AI training - The Information

Published 11/09/2025, 16:42
© Reuters.

Investing.com -- Chinese tech giants Alibaba Group and Baidu have started using their self-designed chips to train artificial intelligence models, partially replacing Nvidia chips, according to The Information.

This transition marks a significant step in the decoupling of Chinese AI development from Western semiconductor technology. The report cites four people with direct knowledge of these developments.

Until recently, Chinese companies relied completely on Nvidia chips for most AI development work. However, U.S. export controls implemented over the past few years have progressively limited the power of AI chips Nvidia could sell in China. Simultaneously, the Chinese government has increased pressure on domestic companies to utilize locally developed chips.

Alibaba has begun using its Zhenwu processing unit for training smaller AI models since early 2025. Meanwhile, Baidu is testing new versions of its Ernie AI model using its self-developed Kunlun P800 chip.

Despite this shift, neither company has completely abandoned Nvidia technology. Both Alibaba and Baidu continue to use Nvidia’s more powerful and stable chips for their most advanced models.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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