Alibaba Plans IPO for AI Chip Unit T-Head Amid Nvidia Competition

Alibaba Group Holding Ltd. is preparing its semiconductor division T-Head for an eventual public listing, capitalizing on booming investor interest in AI accelerator technologies. The MOVE positions the Hangzhou-based giant as a potential challenger to Nvidia’s dominance in specialized AI chips.

The company will first restructure T-Head to include employee ownership before pursuing an IPO. While timing remains unspecified, the announcement propelled Alibaba’s U.S.-listed shares up 4.6% in premarket trading.

T-Head, founded in 2018 as Alibaba’s in-house chip designer, develops processors spanning data centers to IoT devices. Its recent contract with China’s second-largest wireless carrier to deploy Pingtouge AI accelerators demonstrates growing commercial traction.

CEO Eddie Wu’s $53 billion commitment to infrastructure and AI development underscores the strategic importance of semiconductor independence for Chinese tech giants amid U.S. export controls.