Chinese eCommerce giant, Alibaba Group Holdings Ltd, launched a new server chip this Tuesday. In turn, it will boost its cloud computing business and better compete with rivals, such as Amazon and Microsoft.
In terms of market share, Alibaba is the largest cloud computing provider in China and the third-largest globally. With its latest release, the provider will further boost its market position.
The Chinese government has urged the industry to invest in the domestic chip sector since the country falls behind the global competition. They still rely heavily on overseas companies for much of their advanced semiconductors. In turn, they are especially vulnerable to foreign actions, such as the US sanction against Huawei.
Jeff Zhang, who serves the role of a president of Alibaba Cloud Intelligence, had this to say:
Customizing our own server chips is consistent with our ongoing efforts toward boosting our computing capabilities with better performance and improved energy efficiency.
Alibaba Cloud today unveiled a new in-house processor design for use in data centers. The server chips, named Yitian 710, are custom-built by Alibaba Group's chip development business, T-Head.
— Alibaba Cloud (@alibaba_cloud) October 19, 2021
Customers will not get direct access to this product. Instead, Alibaba will incorporate Yitian 710 into new servers called Panjiu. These servers are designed for artificial intelligence applications and storage. Thus, Alibaba customers will get services based on this latest technology.
Alibaba has not yet announced if or when it will release the services based on the latest chip and server for commercial use.