This innovative chip, known as the All-Analogue Chip Combining Electronics and Light (ACCEL), is light-based and utilizes photons for computing and data transmission, offering faster speeds and higher energy efficiency.

Also Read: Alibaba Elevates AI War with Advanced Open-Source Models

This innovation positions China to boost its competitiveness in the mass application of AI, a crucial development as the country seeks to navigate the technological restrictions imposed by the U.S. The sanctions will likely cost Nvidia orders worth $5 billion from Alibaba Group Holding Limited (NYSE:BABA). 

The Chinese e-commerce juggernaut recently showcased the latest version of its AI large language model, designed to train AI applications like chatbots.

The concept of a light-based chip is not novel, but the ACCEL chip stands out as it relies solely on photons for calculations, a feat that has been challenging due to the complexities of controlling light particles. 

In laboratory tests, the ACCEL chip achieved a computing speed of 4.6 PFLOPS, making it 3,000 times faster than one of the most widely used commercial AI chips, Nvidia’s A100. 

Furthermore, the ACCEL chip’s energy consumption is 4 million times lower than that of the A100.

SMIC manufactured the ACCEL chip using a cost-effective and outdated 20-year-old transistor fabrication process. 

Price Action: BABA shares traded higher by 1.27% at $83.53 on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.