Alibaba has announced the launch of a new AI processor, the Zhenwu M890, and revealed an updated version of its large language model, Qwen3.7-Max, as part of continued efforts to strengthen its artificial intelligence ecosystem.
According to Alibaba, the Zhenwu M890 chip achieves triple the processing power of its predecessor, the Zhenwu 810E. The processor is equipped with 144 GB of GPU memory and delivers interchip bandwidth of 800 GB per second, attributes that the company says make it suitable for complex agentic AI tasks, which require substantial memory and high-speed connectivity.
The company reported that it has already supplied a total of 560,000 Zhenwu chips to more than 400 clients spanning 20 different sectors. The release of the M890 is expected to boost the competitiveness of both Alibaba and its semiconductor division, T-Head, within China’s expanding AI chip industry, where companies such as Huawei and Cambricon are also active.
Enhancements have also been made to Alibaba’s AI model, now available in the Qwen3.7-Max version. The updated model is designed for more sophisticated programming and advanced reasoning capabilities, supporting Alibaba’s focus on agentic AI applications.
In a recent earnings discussion, Alibaba’s management emphasized that increasing the implementation of proprietary chips is viewed as delivering the most cost-effective computing resources, and is expected to benefit cloud unit profit margins.
Chinese AI developers continue to face restrictions on accessing advanced processors from U.S. companies, such as Nvidia, due to ongoing American export controls. Chinese authorities have also increased oversight of foreign chip use among local firms, involving products such as Nvidia’s H200, even after some U.S. chips were approved for sale in China.
Alibaba’s considerable investment in AI has contributed to declining profits in recent quarters. However, the company has stated that it remains optimistic about the long-term rewards of these expenditures. Chief Executive Eddie Wu indicated earlier this month that the company anticipates AI-driven products will account for half of the cloud division’s external sales in the next year and become the principal engine for its revenue growth.
