Alibaba Group Holding Limited (NYSE:BABA) stock and peers are trading higher Wednesday amid reports of the Chinese tech supervisor's pledge to support artificial intelligence computing push.
The Ministry of Industry and Information Technology pledged Wednesday to expand computing power to drive breakthroughs in generative AI, which Beijing increasingly prioritizes in its ongoing technological race with the U.S.
The ministry looks to launch measures to guide "high-quality" development of computing networks and large language models, Bloomberg cites MIIT spokesman Zhao Zhiguo.
Also Read: US Semiconductor Companies Try To Convince Government Against Stringent China Policy
In July, regulators eased some of the guardrails they proposed for ChatGPT-style services months ago.
The U.S. has blocked Chinese companies' ability to buy advanced chips, including some Nvidia Corp (NASDAQ:NVDA) products for developing artificial intelligence capabilities.
China's major internet companies, from Alibaba to Baidu Inc (NASDAQ:BIDU) and JD.com Inc (NASDAQ:JD), are amid efforts to build the country's equivalent to OpenAI's ChatGPT.
Meanwhile, U.S. chipmaker executives, including Intel Corp (NASDAQ: INTC), Qualcomm Inc (NASDAQ: QCOM), and Nvidia Corp (NASDAQ: NVDA), tried to canvass U.S. government officials to go softer on the China policy.
In 2022, China accounted for $180 billion in semiconductor purchases, more than a third of the worldwide total of $555.9 billion, and the largest single market.
Price Action: BABA shares traded higher by 2.11% at $93.12 premarket on the last check Wednesday.
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