Alibaba Group Holding Ltd. plans to hold an IPO of the T-Head chip manufacturing division. This is reported by foreign media.
At the first stage, Alibaba intends to transform the division into an AI business partially owned by employees, and then conduct a stock offering against the background of competition with American IT companies.
Alibaba manufactures chips to ensure the operation of data centers and cloud services and has become one of the most active investors in AI, allocating more than $53 billion for the development of AI infrastructure.
Alibaba, which also operates a streaming service and one of the largest food delivery platforms in China, updated the Qwen mobile app in November 2025 to create consumer-facing AI services, and in January 2026 connected flagship online services to Qwen in the travel industry segment.
T-Head has become a strong competitor in the domestic market due to investments by Alibaba, which has an estimated market value of $400 billion. The company has signed a contract with wireless carrier China Unicom to deploy Pingtouge AI accelerators.
Alibaba Group Holding Ltd. is a Chinese e-commerce company. The company offers B2B trading between companies and online retail. Alibaba owns assets in the media and entertainment industries, as well as one of the world's largest cloud computing infrastructures. The headquarters is located in Hangzhou (China).
T-Head (Pingtouge Semiconductor) is a Chinese company manufacturing semiconductor chips for computing and data storage, wholly owned by Alibaba. The headquarters is located in Hangzhou (China).
Read also in our Telegram channel "Mergers and acquisitions. AK&M»
