TLDR
- Alibaba’s logistics subsidiary Cainiao is merging its autonomous driving division with Zelos Technology in a deal creating a $2 billion entity
- The new business will operate as Cainiao Robovan with a fleet exceeding 20,000 autonomous delivery vehicles across China
- Alibaba revealed its Zhenwu 810E chip developed by T-Head semiconductor unit, aiming to match Nvidia’s A800 and A100 performance
- The company will take an equity stake in Zelos while allowing the robotics firm to manage the combined operations
- Both announcements signal Alibaba’s push to develop internal technology and reduce reliance on external suppliers
Alibaba shares climbed during pre-market hours following two separate announcements. The company made moves in both chip manufacturing and autonomous vehicle technology.
Alibaba Group Holding Limited, BABA
The Chinese tech company unveiled a new processor called Zhenwu 810E. T-Head, Alibaba’s semiconductor arm, developed the chip for data center applications.
The processor targets performance levels similar to Nvidia’s A800 and A100 chips. These processors handle machine learning tasks and cloud computing workloads.
Alibaba posted information about the chip on its website. Full technical specifications remain unpublished at this time.
The chip development reflects efforts by Chinese companies to build domestic semiconductor capabilities. Trade restrictions have limited access to certain advanced chip technologies.
Robovan Business Combination
The Wall Street Journal reported Cainiao plans to combine its self-driving vehicle unit with Zelos Technology. People familiar with the matter shared details of the transaction.
The merged entity will carry a $2 billion valuation. Alibaba will obtain an ownership stake in Zelos as part of the arrangement.
Cainiao’s autonomous vehicle operations will merge into Zelos. The combined company will use the Cainiao Robovan brand name.
More than 20,000 robotic delivery vehicles will operate under the new business. A Cainiao executive will receive a seat on the Zelos board.
Zelos started operations in 2021. The company focuses on autonomous delivery for postal networks, consumer goods distributors, and express shipping providers.
Technology Independence Strategy
Developing proprietary chips gives Alibaba more control over its technology stack. Custom processors can be optimized for specific cloud services and AI applications.
The approach reduces dependence on third-party chip suppliers. It also allows tighter integration between hardware and software systems.
The autonomous delivery merger strengthens Alibaba’s logistics automation efforts. Robotic vehicles can lower delivery costs and improve speed across distribution networks.
Zelos contributes specialized knowledge in self-driving logistics technology. The company operates across multiple delivery segments in the Chinese market.
Analysts maintain favorable views on Alibaba stock. TipRanks shows 14 buy ratings with a consensus price target of $203.09.
The stock has risen nearly 90% in the past year. Trading activity increased following the dual announcements.
Neither company issued official comments on the merger report. Reuters could not verify the Wall Street Journal’s information independently.
Zelos will maintain operational control of the merged autonomous vehicle business. The Cainiao Robovan fleet will serve postal, retail, and express delivery customers.
A Cainiao representative will join Zelos’s board of directors. The transaction awaits regulatory review and final closing procedures.
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