China Unicom has constructed a major data center in Xining, Qinghai Province, using domestically developed artificial intelligence chips from Alibaba and other Chinese firms. The move reflects Beijing’s push to reduce reliance on foreign technology, especially amid rising tensions with the United States over chip exports.
The $390 million facility is expected to reach a computing capacity of 20,000 petaflops. So far, it has achieved 3,579 petaflops using nearly 23,000 locally made AI chips. Alibaba’s chip division, T-Head, supplied around 72 percent of these chips, with contributions from MetaX, Biren Tech, and Zhonghao Xinying. Future procurement plans include Tecorigin, Moore Threads, and Enflame.
T-Head’s PPU chip, featuring 96GB of memory and HBM2e technology, is seen as a strong rival to Nvidia’s H20, the most advanced chip the U.S. currently allows for sale to China.
The announcement coincides with U.S. officials raising national security concerns during trade talks in Madrid, aiming to restrict China’s access to advanced technologies. Chinese authorities have reportedly advised domestic companies to avoid using Nvidia chips due to security risks.
Meanwhile, Beijing has launched a preliminary investigation into Nvidia for potential violations of anti-monopoly laws.
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