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Alibaba launches 10,000-card AI cluster as China ramps up tech push

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Alibaba and China Telecom are moving ahead with a new data centre project in southern China, powered entirely by the e-commerce giant’s in-house AI chips, as Beijing steps up efforts to build domestic computing infrastructure.

Summary

  • Alibaba and China Telecom launched a 10,000-chip AI data centre in Guangdong using Zhenwu semiconductors to support large-scale models.
  • The project highlights China’s push for domestic AI infrastructure amid U.S. chip restrictions and rising demand for computing power.
  • Alibaba plans to expand the cluster to 100,000 chips as adoption grows across sectors like healthcare and manufacturing.

The facility, unveiled on Tuesday, will be equipped with 10,000 of Alibaba’s Zhenwu semiconductors, designed for both AI training and inference. The system is capable of supporting models with hundreds of billions of parameters, placing it among the most advanced computing setups currently in operation.

Deployed at a data centre in Shaoguan, Guangdong province, the cluster is described as a “fully domestic” project and represents the first Zhenwu-powered system of this scale in the Greater Bay Area. Alibaba said the chips can operate as a unified system, enabling the cluster to function like a single supercomputer with ultra-low latency of around four microseconds.

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The rollout highlights how China’s leading technology firms are accelerating development of proprietary AI chips and infrastructure as the country pushes for self-reliance in critical technologies.

In recent years, Washington has tightened restrictions on China’s access to advanced semiconductor technologies, including AI chips produced by Nvidia. The curbs have prompted Chinese firms to speed up the development of local alternatives across both hardware and infrastructure.

Alibaba Group Holding has been advancing its chip ambitions through its T-Head semiconductor unit, while continuing to expand its position in cloud computing. The company now operates across the full AI stack, from chip design to data centre construction and model development, with services delivered through its cloud division.

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Cloud computing has remained one of Alibaba’s fastest-growing segments in recent quarters, supported by rising demand for AI workloads. Across China, investment in large-scale data centres using domestic technologies has picked up pace.

A similar project went online last month in Shenzhen, where a 10,000-card cluster built on Huawei’s Ascend 910C chips began operations, signalling a coordinated effort among Chinese firms to scale local computing power.

Unlike their U.S. counterparts, companies such as Meta and Microsoft, which are expected to collectively spend hundreds of billions of dollars on AI infrastructure this year, Chinese players have taken a more targeted approach. Investment has focused on sectors expected to generate measurable returns, including industrial applications and enterprise services.

Scaling AI infrastructure for real-world deployment

The Zhenwu-powered cluster adds to growing evidence that China is shifting from experimentation to large-scale deployment of AI systems. Demand for computing power continues to rise as industries integrate AI into production and services.

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According to Charlie Zheng, chief economist at Samoyed Cloud Technology Group Holdings, the rollout of domestic clusters signals a transition from “hardware replacement” to “software collaboration” across China’s AI sector.

He noted that adoption has been fastest in government services and urban governance, where requirements around data sovereignty and system security remain particularly strict.

“The sector’s rigid demand for data sovereignty and security has driven the fastest deployment,” Zheng said.

Alibaba stated that the cluster delivers around 30% higher efficiency in training and inference tasks, while single-card throughput has increased nearly tenfold. The system has already been deployed in areas such as healthcare and advanced manufacturing.

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Access to the cluster is being extended to small and medium-sized enterprises through China Telecom’s platform, with usage priced on a per-card or hourly basis.

Looking ahead, Alibaba plans to expand the system to 100,000 chips, a move expected to reduce costs further and improve overall resource utilisation as demand for large-scale AI computing continues to build.

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Crypto World

Iran turns Strait of Hormuz into $1-per-barrel Bitcoin tollbooth

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Iran strikes Gulf energy network as oil surges past $110

Iran will charge tankers $1 per barrel in bitcoin to cross the Strait of Hormuz during a two‑week US ceasefire, adding a crypto tax to the world’s key oil chokepoint.

Iran will force every oil tanker transiting the Strait of Hormuz during the new two-week ceasefire with the US to pay a $1-per-barrel toll in cryptocurrency, turning the world’s most sensitive oil chokepoint into a de facto bitcoin paywall. According to the Financial Times, Tehran will demand that shipping companies settle the fee in digital assets, primarily bitcoin, as it seeks hard-to-trace revenues while sanctions bite. Hamid Hosseini, spokesperson for Iran’s Oil, Gas and Petrochemical Products Exporters’ Union, said the system is designed to slow traffic on Iran’s terms and tighten control over what moves through the corridor.

Under the scheme, tankers must first email Iranian authorities with detailed cargo manifests before entering the strait. Hosseini told the Financial Times that once the email is received and Tehran completes its assessment, “vessels are given a few seconds to pay in bitcoin, ensuring they can’t be traced or confiscated due to sanctions.” He added that “everything can pass through, but the procedure will take time for each vessel, and Iran is not in a rush,” underscoring that the stated aim is to prevent weapons shipments during the pause in fighting. With typical crude cargoes ranging from 500,000 to 2 million barrels, a single transit could mean crypto payments of $500,000 to $2,000,000 per voyage.

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Ceasefire, crypto and a global oil lifeline

The toll comes as Washington and Tehran test a fragile truce that hinges on a partial reopening of the Strait of Hormuz, which before the war carried roughly a fifth of the world’s seaborne oil. A senior Iranian official told Reuters that Iran could reopen the strait “limited, under Iran’s control” as early as Thursday or Friday, ahead of talks with US officials in Pakistan. Oil markets have already reacted: Brent futures slid about 13% to roughly $94.76 per barrel and US benchmark WTI dropped more than 15% to around $95.79 after President Donald Trump agreed to the two-week ceasefire, conditional on the “immediate and safe” reopening of the strait.

In Washington, Trump has floated turning the tolls themselves into a joint business model. “We’re thinking of doing it as a joint venture,” he told ABC News’s Jonathan Karl, calling it “a way of securing it — also securing it from lots of other people. It’s a beautiful thing.” That suggestion follows earlier musings that the US could impose its own tolling regime on ships using the strait, effectively monetizing a corridor where even a $1-per-barrel surcharge is a small fraction of crude trading in the mid-$90s but represents a new geopolitical tax on a market still reeling from weeks of war-driven price spikes.

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Crypto World

Standard Chartered Mulls Restructuring of Zodia Crypto Custodian: Report

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Standard Chartered Mulls Restructuring of Zodia Crypto Custodian: Report

Standard Chartered is reportedly weighing a restructuring of its majority-owned crypto custodian Zodia Custody, as large banks look to bring more digital asset infrastructure inside their core banking operations.

The United Kingdom-based lender plans to fold Zodia’s crypto custody business into a division inside its corporate and investment bank that already offers similar services, while keeping Zodia operating as a standalone Software-as-a-Service (SaaS) platform for digital asset custody, according to Bloomberg on Wednesday, citing people familiar with the matter. An announcement on the restructuring could reportedly come as soon as this month.

It is not yet clear whether Standard Chartered has opened negotiations with Zodia’s minority shareholders, which include Northern Trust, Emirates NBD, National Australia Bank and SBI Holdings.

Standard Chartered has rapidly expanded its own digital asset footprint, reportedly exploring the launch of a crypto prime brokerage platform through its venture arm, SC Ventures, and rolling out institutional crypto trading in summer 2025.

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Related: Standard Chartered says faster stablecoin turnover could curb demand

The bank was an early mover into digital assets, setting up Zodia in 2020 with Northern Trust, and the custodian has since raised external capital and grown across seven offices in Europe, Asia and the Middle East.

Zodia Custody Services. Source: Zodia Custody

Cointelegraph reached out to Standard Chartered and Zodia, but had not received a response by publication.

How other big banks are internalizing crypto custody

Standard Chartered’s reported rethink comes as other global banks take digital asset custody directly under regulated banking entities. In February, Morgan Stanley applied for a US de novo national trust bank charter, which would allow it to custody certain digital assets and execute purchases, sales, swaps, transfers and staking services for clients within a bank-regulated framework.

In October 2022, BNY Mellon launched a Digital Asset Custody platform in the US that lets selected clients hold and transfer Bitcoin (BTC) and Ether (ETH) alongside traditional assets on a single platform, positioning the bank as a core provider of both conventional and tokenized asset servicing.

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