Alibaba Prepares Chip Unit IPO to Compete with Nvidia in AI Hardware Market
Alibaba Group Holding Ltd. is advancing plans to list its semiconductor division, T-Head, as a standalone entity. The move aims to capitalize on soaring investor appetite for AI hardware alternatives, positioning the unit as a domestic challenger to Nvidia Corp. A preliminary restructuring will align employee incentives with future stock performance before pursuing an initial public offering.
T-Head, originally an internal R&D arm for Alibaba's data centers, has pivoted to commercial operations following U.S. restrictions on advanced AI chip exports to China. The unit now develops homegrown alternatives to Nvidia's accelerators, though the American firm maintains dominance with a $4.5 trillion market valuation.