TLDR
- Alibaba’s logistics arm Cainiao is merging its autonomous-driving unit with Chinese robovan company Zelos Technology in a deal valuing the new entity at $2 billion
- The merged company will operate as Cainiao Robovan with a fleet of over 20,000 robovans focused on autonomous delivery
- Alibaba will acquire a stake in Zelos, which will run the combined business, with a Cainiao executive joining Zelos’s board
- Alibaba unveiled a new in-house AI chip called Zhenwu 810E through its T-Head semiconductor unit, targeting performance comparable to Nvidia’s A800 and A100 chips
- The moves show Alibaba’s strategy to reduce dependence on external suppliers and build proprietary technology across AI hardware and logistics
Alibaba shares climbed in pre-market trading following news of two separate developments. The company announced moves in both artificial intelligence hardware and autonomous delivery operations.
Alibaba Group Holding Limited, BABA
The Chinese tech giant revealed a new processor through its T-Head semiconductor unit. The chip, named Zhenwu 810E, appeared on Alibaba’s website recently.
Industry analysts believe the processor aims to match performance levels of Nvidia’s A800 and A100 data-center chips. These chips handle AI workloads across cloud computing operations.
Alibaba has not released full technical specifications for the new processor. The company designed the chip to support its cloud services and AI models.
Autonomous Delivery Merger
Alibaba’s logistics arm Cainiao plans to merge its autonomous-driving unit with Zelos Technology. The Wall Street Journal reported the deal on Thursday, citing sources familiar with the matter.
The new entity carries a valuation of approximately $2 billion. Alibaba will take a stake in Zelos, which will operate the combined business.
Cainiao’s unmanned-vehicle segment will fold into Zelos under the merger. The combined company will operate as Cainiao Robovan.
The new entity will manage a fleet of more than 20,000 robovans. A Cainiao executive is expected to join the Zelos board following the transaction.
Zelos Technology launched in 2021. The company specializes in autonomous logistics for postal services, fast-moving consumer goods, and express delivery.
Building Proprietary Technology
The chip development comes as Chinese technology companies work to reduce reliance on foreign hardware suppliers. Access to advanced chips has become more restricted in recent years.
By designing its own processors, Alibaba can customize hardware for specific applications. The approach allows better integration with the company’s AI models and cloud infrastructure.
The autonomous delivery merger represents another step in Alibaba’s logistics automation strategy. The company uses automation to lower operational costs across its delivery network.
Alibaba’s stock gained ground following the announcements. Analysts note the dual developments reflect a broader push into proprietary technology.
The company holds a Strong Buy rating from 14 analysts on TipRanks. The average price target stands at $203.09, suggesting potential upside from current levels.
Neither Alibaba nor Zelos Technology provided immediate comment on the merger report. Reuters could not independently verify the Wall Street Journal report at the time of publication.
The Cainiao Robovan fleet will serve various logistics segments after the merger completes. Zelos will maintain operational control of the combined autonomous vehicle business.
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