In a move to strengthen its AI capabilities, Alibaba has introduced its next-generation XuanTie C950 5-nanometer processor at an internal conference, as it prepares for the shift toward agentic AI.
The 3.2 GHz server chip is built on the open-source RISC-V architecture. It was described as “the highest performing RISC-V CPU in the world” during an event hosted by DAMO Academy, according to media reports.
The company stated that the new chip delivers more than 3 times the performance of its predecessor, the XuanTie C920. However, Alibaba did not disclose which manufacturer produced the chip.
In its blog post, the company highlighted the advantages of RISC-V, stating, “RISC-V’s open-standard nature allows chip designers to customize instruction sets and accelerate specific AI workloads with no or low licensing fees. This is particularly important for the development of AI agents.”
Alibaba is continuing to expand its in-house chip development through its T-Head semiconductor unit. The company is focusing on the Zhenwu 810E chip series for AI training and inference, while the XuanTie series is designed for high-performance cloud systems and agentic AI.
This announcement follows the recent launch of Wukong, an enterprise platform built for AI agent workflows, as organisations across China adopt OpenClaw. The company also introduced its international version, Accio Work, on Monday. This platform is designed to autonomously manage complex business operations for small and medium-sized enterprises.
Earlier this month, Alibaba reorganised several AI-focused teams under a new unit called Alibaba Token Hub. This division focuses on building AI work platforms for enterprises.
The strategic shift comes as Alibaba looks for new ways to maintain profitability. This follows a sharp decline in token prices of Chinese AI models due to intense competition in the domestic market.
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