Alibaba Prepares Hong Kong IPO For Chip Unit T-Head as China Ramps Up AI Chip Ambitions to Challenge Nvidia
Namrata Sen 8 hours ago
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Alibaba plans a Hong Kong IPO for chip unit T-Head as it expands AI hardware ambitions amid growing demand for Nvidia chips in China.
Alibaba Group Holding Ltd. (NYSE:BABA) is preparing to spin off its semiconductor subsidiary, T-Head, through a proposed public offering in Hong Kong, adding a potential listed vehicle for its chip ambitions.
The Hong Kong Stock Exchange approved Alibaba’s pursuit of a T-Head spinoff, according to an announcement made late Tuesday. Alibaba said on Wednesday that it intends to publicly offer T-Head shares in Hong Kong. The transaction remains subject to approval from the exchange and the China Securities Regulatory Commission.
The company has not disclosed a proposed listing date or offering size. Alibaba said it confidentially submitted an application to list T-Head on Sept. 11.
Alibaba’s AI Chip Push Gains Momentum
The proposed listing comes as Alibaba expands its focus on internally developed AI hardware. In September, the company introduced the Zhenwu V900 AI chip, describing it as capable of delivering three times the performance of its predecessor, the Zhenwu M890, and supporting clusters of up to 500,000 chips, with production expected to begin in Q1 2027.
While no international benchmark is available, Chinese analysts have compared the M890 to Nvidia Corp.‘s (NASDAQ:NVDA) H200 chip.
That being said, with intensifying demand for advanced computing hardware across China’s technology sector, ByteDance, Alibaba and Tencent Holdings Ltd. (OTC:TCEHY) were reported to have placed more than $35 billion in orders for Nvidia Corp. (NASDAQ: NVDA) graphics cards.
Short seller Culper Research alleged in a May 2026 report that Alibaba indirectly financed entities in Southeast Asia to gain access to restricted Nvidia AI chips. Culper alleged that Alibaba secretly financed Singapore-based chip buyer Megaspeed through intermediary companies, potentially helping it obtain restricted Nvidia AI chips and route them through Southeast Asia. The short seller cited corporate filings and financial records to support its claims.
Alibaba and Nvidia did not immediately respond to Benzinga’s request for comment.
Price Action: Over the past month, Alibaba stock has declined 7.28%, as per Benzinga Pro. On Tuesday, the stock closed 2.52% higher at $102.72.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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