Alibaba and Baidu Shift to In-House AI Chips

September 12, 2025
Alibaba and Baidu have started using their own chips for AI model training, partly replacing Nvidia's, as reported by The Information.

Alibaba Group and Baidu, Inc. have begun using their own internally designed chips to train AI models, partly replacing those made by NVIDIA, according to The Information. This move marks a significant shift in the Chinese tech landscape, where companies have traditionally relied on NVIDIA's powerful processors for AI development.

Alibaba has been utilizing its Zhenwu processing unit for smaller AI models since early this year, while Baidu is experimenting with its Kunlun P800 chip for training new versions of its Ernie AI model. Despite this shift, both companies continue to use NVIDIA chips for their most advanced models due to performance advantages.

The transition to in-house chips comes amid increasing U.S. export restrictions on advanced AI chips to China and pressure from the Chinese government to adopt homegrown technology. This strategic move by Alibaba and Baidu reflects a broader trend of Chinese companies seeking to reduce reliance on Western semiconductor technology.

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