Alibaba’s AI Breakthrough Cuts Nvidia GPU Reliance by 82%, Boosting Cloud Efficiency

Alibaba Group Holding Limited has made a significant leap in AI infrastructure with its new Aegaeon computing pooling technology. The system reduces Nvidia GPU usage by 82% in model-serving operations, allowing a single H20 GPU to concurrently serve seven large language models. This innovation positions Alibaba Cloud as a leader in scalable AI deployment.

The Aegaeon solution achieves this efficiency through token-level auto-scaling during model inference, enabling dynamic resource reallocation across concurrent AI workloads. Internal testing showed GPU requirements dropping from 1,192 units to just 213. The technology also slashes model-switching latency by 97%, dramatically improving performance.

This advancement comes as China pushes for greater AI self-sufficiency. Alibaba's breakthrough could reshape the competitive landscape, reducing dependence on Nvidia chips while maintaining high-performance computing capabilities. The company's stock closed at $167.05, up 1.19%, reflecting market Optimism about this technological edge.