(Caixin Global) Alibaba Group has launched a customized processor chip that will support its cloud computing business in a push to remain competitive ahead of Amazon and Microsoft.
The new processor chip, Yitian 710, will be used in new servers called Panjiu.
The development of the chip began in 2019 by Alibaba’s chip manufacturing subsidiary Pingtouge and the final design was completed mid this year.
Alibaba will not sell the chip and servers directly to the customers, but clients will access cloud-computing services based on the technology.
Alibaba is following the trend of most Chinese companies, where it will only design the semiconductor chip but will not manufacture it.
The group, which is currently the biggest cloud computing service provider in China, is betting on cloud business to drive growth. The segment currently accounts for 8% of its total revenue.
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