Targeting the Global South, Nvidia Faces a Challenge… Alibaba to Openly Release AI Chip Software

Alibaba has thrown down the gauntlet to Nvidia’s ecosystem by making software for its in-house artificial intelligence (AI) chips available for free. This open-source release is a strategic move designed to encourage a shift away from Nvidia’s CUDA ecosystem, directly challenging the company’s market dominance.

Separately, Alibaba is pursuing an “open-weight” strategy, releasing model weights alongside the debut of its ‘Qwen 3.8 Max’ model. This approach is calculated to foster a China-led open ecosystem to rival the closed model ecosystem dominated by U.S. firms. Following its release, ‘Qwen 3.8 Max’ saw explosive demand from global developers, leading to a temporary suspension of new sign-ups.

Chinese President Xi Jinping underscored “open source” and “international cooperation” in a keynote speech at the World Artificial Intelligence Conference (WAIC) in Shanghai, providing policy backing for this open strategy. Alongside these technical maneuvers, China is intensifying efforts to secure AI hegemony by launching the World Artificial Intelligence Cooperation Organization (WAICO). WAICO’s focus on strengthening AI capabilities in Global South nations is interpreted as China’s intent to preempt the market in these regions and expand its own AI ecosystem.