Alibaba's Strategic Pivot: Embracing Domestic AI Chips Amid US Restrictions

Alibaba shifts AI strategy, ordering Huawei's Ascend 950PR chips to reduce US dependency. Focus on AI inference and new B2B platform Accio Work ahead of key May 2026 earnings.

Chinese e-commerce and cloud computing giant Alibaba is making a decisive shift in its artificial intelligence infrastructure strategy. According to a Reuters report from March 27, the company plans to place orders for Huawei's new Ascend 950PR AI chip. This move is designed to further reduce reliance on semiconductor imports from the United States.

Financial Performance and Upcoming Catalyst

Alibaba's shares have faced significant headwinds in the current year, declining nearly 20% since January and trading well below their key moving averages. The next major potential catalyst for the equity is the quarterly financial report, scheduled for release on May 14, 2026. Market participants will be watching closely to see if the company's strategic investments in AI, including the Huawei partnership and the launch of its Accio Work platform, begin to translate into improved financial performance.

The Appeal of Huawei's Latest Chip

Previous iterations of Huawei's chips, such as the Ascend 910C, saw limited adoption by major private-sector technology firms despite state encouragement. The 950PR model appears to be a different proposition. Its enhanced compatibility with Nvidia's industry-standard CUDA software ecosystem and its faster response times are key advantages.

For Alibaba's current operational focus, raw computing power is less critical than a chip's suitability for "inference workloads." This refers to the execution of already-trained AI models in daily operations, a segment where demand in China is exploding. The proliferation of AI agents in productive use is fueling this rapid growth. Huawei itself has ambitious plans, targeting production of approximately 750,000 units of the 950PR chip this year.

This strategic realignment occurs against a backdrop of escalating US export controls. Washington has banned the sale of numerous advanced Nvidia chips to China. While the Trump administration recently permitted exports of the H200 chip under specific conditions, the persistent uncertainty regarding future restrictions is compelling Chinese tech companies to accelerate their pursuit of domestic semiconductor supply chains.

Expanding AI Solutions for Business Clients

Concurrently, Alibaba International is aggressively expanding its B2B AI offerings. On March 23, the division unveiled "Accio Work," an enterprise assistant built on a no-code platform. This tool enables businesses to deploy AI agents for a variety of tasks, including customs documentation, tax processing across more than 100 global markets, and supplier negotiations.

The platform has demonstrated substantial reach. According to Alibaba.com President Kuo Zhang, between 30 and 40 percent of its customers are now solo entrepreneurs. Accio Work reports a global user base exceeding 10 million monthly active users, highlighting the scale of its adoption.