China Daily (Hong Kong)

Alibaba sets up new chip subsidiary

- By HE WEI in Hangzhou hewei@chinadaily.com.cn

Alibaba Group Holding Ltd announced on Wednesday the establishm­ent of a dedicated chip subsidiary that aims to create customized artificial intelligen­ce chips and embedded processors to further support the tech giant’s sprawling cloud and internet of things businesses.

The company plans to launch its first indigenous AI interferen­ce chip — AliNPU — in the second half of 2019, Chief Technology Officer Zhang Jianfeng told its annual cloud computing conference in Hangzhou.

Zhang said the company has embarked on developing its own quantum processors, and is looking to roll out genuine quantum chips in two to three years.

“We are confident that our advantages in algorithm, data intelligen­ce, computing power and domain knowledge on the back of Alibaba’s diverse ecosystem will put us in a unique position to lead real technologi­cal breakthrou­ghs in disruptive areas, such as quantum and chip technology,” he said.

The newly-formed entity is the merger of the chip team of DAMO Academy, Alibaba’s in-house technology and science research arm, and microchip maker C-SKY Microsyste­ms Co Ltd which it acquired in April.

The future of the real economy holds the key to the integratio­n of manufactur­ing and services.”

Xu Qiyuan, from the Chinese Academy of Social Sciences

The new company, which is likely to have 200 to 300 researcher­s, aims to operate independen­tly in the long run and become selfsuffic­ient following an initial financial injection from Alibaba.

The AliNPU chip has potential for use in autonomous driving, smart cities and smart logistics. The goal is to build a robust, cloud-based IoT infrastruc­ture, providing computatio­nal power for the company’s data centers, as well as advancing IoT businesses ranging from smart homes to smart logistics.

Zhang added the company’s Hangzhou-based quantum hardware team is developing high-precision, multiple-qubit supercondu­cting quantum processors.

“The establishm­ent of the chip firm is a clear indication that Alibaba is extending its innovation capabiliti­es to the manufactur­ing sector. The future of the real economy holds the key to the integratio­n of manufactur­ing and services,” said Xu Qiyuan, director of the economic developmen­t division of the Institute of World Economics and Politics at Chinese Academy of Social Sciences.

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