Alibaba rose 3% in morning trading as it released its self-developed 5nm cloud chip Yitian 710.
On Tuesday, the company confirmed plans to develop an in-house processor that would be used to power its cloud computing business.
The design is based on British chipmaker Arm Holding's architecture and will use the 5nm technology, which has been under development since 2019 and is expected to boost Alibaba’s cloud services by leveraging performance and energy efficiency.