Alibaba stocks increase after it landed a major customer for his AI chips

Alibaba The shares grew on Wednesday after Chinese state media reported that the e -commerce giant provided the main client for his artificial intelligence chips.

China Unicom will deploy AI AI AI AIBABA accelerators from its semiconductor unit called Pingtouge or T-Head, China State Broadcaster said. Alibaba does not sell chips directly, but companies can effectively use computing based on these semiconductors by buying cloud services Alibaba.

A person familiar with this issue supported the CNTV report to CNBC.

Alibaba was not immediately available for comments when referring to CNBC.

Alibaba’s shares were closed by more than 5% higher in Hong Kong, and stocks listed in the United States increased by more than 2% in the premier trade.

Alibaba’s computing will be used by the Chinese Unicom, the second largest telecommunications company of the country as part of a large new project centers in China, which will also include other domestic firms, including Metax and Biren Technology.

This step emphasizes China’s efforts to enhance the use of home semiconductors for the II at a time when Nvidia access to the second largest economy in the world remains in the flow.

On Wednesday, Financial times China’s Chinese administration has been reported to stop buying certain Nvidia AI chips in China in China. Nvidia’s stocks were approximately 1% below in Premarket.

Alibaba is one of the leading Chinese players II. He developed his own AI models and is one of the largest cloud computing players. At the same time it develops a brand new chip II, Cnbc It was reported last month.

It is unclear when China Unicom uses the latest Alibaba chips. Information about the partnership of two companies appeared after CCTV showed a billboard that contains details under the report on the new Telecoms Giant data center in Tsing.