❯ Alibaba chip unit T-Head reportedly plans a 2027 Hong Kong IPO to raise $2 billion to $3 billion

A reported fundraising rangeInternational Financing Review, as reported by Zhitong Finance, says Alibaba chip design unit T-Head is planning to list in Hong Kong in 2027 and aims to raise about $2 billion to $3 billion. Alibaba has yet to confirm a timetable or announce offering terms. CEO Eddie Wu raised the possibility of an independent listing in March. The new report adds a venue, timing, and a fundraising range.

What the shipments and revenue figures measureOn Alibaba’s March earnings call, Wu said T-Head had started volume production of its own AI chips, had shipped about 470,000 by February, and was running at roughly RMB 10 billion in annualized revenue. Shipments were cumulative, while the revenue figure described the scale of the business at the time. For Alibaba Cloud, the chips also provide a supply of computing power for its own models and services sold to customers.

A new chip is due for commercial rollout in early 2027Alibaba Cloud unveiled the Zhenwu V900 in September for training and inference, with volume production and commercial release planned for the first quarter of 2027. It says the V900 has 216 GB of memory and delivers three times the performance of the M890. Alibaba also announced an upgraded server design that combines computing, networking, and storage hardware. Cloud customers need working clusters to run large models, and networking and storage affect the compute they can actually use.

A listing would put the chip business in view on its ownAlibaba Cloud says the Zhenwu family has served more than 650 customers across industries including automotive, finance, energy, and manufacturing. T-Head supports Alibaba’s own cloud and model operations while finding uses in those markets. If a listing goes ahead, investors will need more detail on revenue by product, the mix of internal and external customers, and delivery schedules to assess the business on its own.

▮ SIGNALAlibaba Cloud gives T-Head a place to deploy new chips at scale. An independent listing would put more attention on how broadly the hardware and related services can sell beyond the group.