BEIJING, March 24 (Reuters) - Alibaba ( BABA ) on

Tuesday revealed its next-generation XuanTie C950 5-nanometer

processor at an internal conference on Tuesday, local media

reported, as the Chinese tech giant gears up for the shift

towards agentic AI.

* The 3.2 GHz server chip, built using open-source RISC-V

chip architecture, was billed as "the highest performing RISC-V

CPU in the world" at a conference hosted by DAMO Academy,

Alibaba's ( BABA ) research arm, according to the reports.

* The chip performs more than three times faster than its

predecessor, the XuanTie C920, the reports said.

* The company did not reveal which fab manufactured the

chip.

* Alibaba ( BABA ) did not immediately respond to an emailed request

for comment.

* Alibaba ( BABA ) is accelerating in-house chip development through

its T-Head semiconductor arm, primarily focusing on the Zhenwu

810E chip series for AI training and inference, while the

XuanTie series is focused on high-performance cloud systems and

agentic AI.

* The move comes after Alibaba ( BABA ) last week launched Wukong,

its enterprise platform optimised for AI agent workflows, as

companies and institutions throughout China adopt OpenClaw.

* Its international equivalent, Accio Work, was launched on

Monday. The agentic AI platform says it can autonomously run

complex business operations for small and medium-sized

enterprises.

* The firm reorganised some of its AI-focused teams under

the newly created Alibaba Token Hub earlier this month, which

focuses on building AI work platforms for enterprises.

* The business strategy shift comes as Alibaba ( BABA ) finds new

ways to ensure profitability as Chinese AI models' token prices

have dropped dramatically amid fierce domestic competition.