Alibaba Cloud has introduced a new pooling system that reportedly reduces the use of Nvidia GPUs by 82%. This innovative approach aims to optimize cloud resource management and enhance efficiency for users relying on high-performance computing. The initiative reflects Alibaba's efforts to compete in the cloud services market against other major players.

Alibaba is developing a new AI chip aimed at compensating for the supply gap left by Nvidia, which has faced regulatory challenges in China. As Chinese tech companies ramp up efforts to produce their own processors, Alibaba's move comes amid increased demand for cloud computing services and revenue growth in that sector.

Alibaba and Nvidia are expanding their partnership to enhance artificial intelligence capabilities, focusing on cloud computing and data processing. This collaboration aims to leverage Nvidia's advanced AI technologies within Alibaba's cloud services, potentially transforming various sectors in China and beyond.

Alibaba's new AI chip is designed to compete directly with NVIDIA’s H200, aiming to capture a share of the growing AI hardware market. The chip boasts advanced capabilities tailored for AI workloads and is positioned to challenge NVIDIA's dominance in the sector. With significant investments in AI technology, Alibaba is poised to leverage its infrastructure to enhance performance and efficiency.

Alibaba Cloud has developed a new pooling system called Aegaeon that significantly reduces the number of Nvidia GPUs needed for serving large language models, achieving an 82% reduction during beta testing. This innovative system allows for better GPU utilization by virtualizing access at the token level, enabling multiple models to be served simultaneously and increasing output efficiency. The findings suggest potential advancements for cloud providers in managing GPU resources, particularly in constrained markets like China.