08:07 AM EDT, 08/29/2025 (MT Newswires) -- Alibaba ( BABA ) has reportedly developed a new AI chip aimed at a broader range of inference tasks as Chinese cloud providers seek alternatives to constrained Nvidia ( NVDA ) supplies, the Wall Street Journal reported Friday, citing sources familiar with the matter.

The chip is described as more versatile than Alibaba's ( BABA ) earlier processors and is reportedly compatible with the Nvidia ( NVDA ) software stack, allowing engineers to reuse software written for Nvidia ( NVDA ) hardware.

The new processor is being manufactured by a Chinese foundry, unlike an earlier Alibaba AI chip that was fabricated by Taiwan Semiconductor Manufacturing ( TSM ) , the WSJ reported.

Shanghai-based MetaX is preparing a higher-memory chip for mass production and that Cambricon Technologies posted robust April-June revenue linked to orders for its Siyuan 590, the news outlet reported.

The chip is reportedly intended for inference workloads rather than model training, while Alibaba's ( BABA ) cloud revenue grew 26% in the April-June quarter as demand for AI services expands.

Alibaba ( BABA ), Nvidia ( NVDA ), and TSMC did not immediately respond to MT Newswires' request for comment.

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