Alibaba, a Chinese e-commerce mogul, launched a new-fangled server chip today (19th Oct 2021) to enhance its cloud computing business and contend against US competitors like Amazon. The Yitian 710 processor will be accommodated into the new Panjiu servers.
Alibaba expands cloud computing business
The Yitian 710 chip and Panjiu servers will not be directly traded to consumers. Instead, Alibaba’s cloud computing consumers will purchase services rooted in this latest technology. The Panjiu servers are fabricated for AI applications and storing.
Alibaba has not yet established the date of availability concerning the services based on the latest chip and server.
Alibaba will abstain from participating in the manufacturing process. Instead, the company will be involved in the design operation of the semiconductor.
Alibaba will follow the trend among Chinese firms. For instance, Huawei designed its smartphone processors and Baidu injected money in 2021 for a solitary semiconductor business. US cloud computing competitors including Amazon and Google have followed this trend.
Alibaba views cloud computing as a chief facet of its future success. However, this division contributes 8% of the firm’s complete revenue. The e-commerce mogul’s cloud computing business saw leisurely growth in the June quarter post losing a key customer that was utilizing cloud services abroad.
However, according to market analyst company – Canalys, Alibaba is one of China’s biggest cloud computing providers.
As sanctions from the United States of America constantly affect Huawei’s smartphone business, the firm is also seeking to enhance its revenue from cloud computing.
Alibaba has been striving to enhance its cloud business, but still traces firms like Microsoft and Amazon concerning the global market share.
Firms are investing in their home-grown processors as a way to have tailormade silicon that can perform specific applications as a way to stand out from their competitors.
Alibaba’s Yitian 710 processor
The Yitian 710 chip is derived from the architecture designed by Arm, a British semiconductor company. Latest manufacturing procedures have also been coupled into the fabrication of the chip. The e-commerce mogul has still not disclosed the name of the company that will be manufacturing the processor.
The Yitian 710 is not the firm’s preliminary venture into tailormade semiconductors. In 2019, it released its foremost AI chip dubbed Hanguang 800.
The new server processor arrives at a time when Chinese internet moguls witness stringent inspection from domestic regulators seeking to brace regulations around areas involving data collection. Despite relying heavily on international technology, China is striving to enhance its domestic capabilities in semiconductor manufacturing.