Nvidia shares dropped 1.7% as reports emerged that Alibaba has created a new AI chip to reduce reliance on U.S. suppliers in China. This move showcases China’s push for a self-sufficient AI supply chain amid U.S. export restrictions. Alibaba’s new chip is more versatile and supports a wider range of tasks than previous models. MetaX and Cambricon Technologies are also introducing competing chips in the market. Alibaba’s cloud revenue surged 26% fueled by AI demand. The company has committed $53B over three years to AI and cloud investments. Relevant companies involved are Nvidia and Alibaba.

Read more at Quiver Quantitative: Nvidia Shares Dip as Alibaba Develops New AI Chip to Reduce Reliance on U.S. Suppliers