Weighing The Cons Of Alibaba's Chip Development
$Alibaba(BABA.US$ has developed a chip which is based on $SoftBank Group (ADR)(SFTBY.US$ $SOFTBANK GROUP CORP(SFTBF.US$ backed British chipmaker Arm Holding's architecture, and is marred in controversies, California New Times reports.Many tout the Japanese tech investors' sale of Arm to $NVIDIA(NVDA.US$ as questionable.The new chip will support Alibaba's data centers and servers that enhance logistics, e-commerce, and fast-growing cloud services. Interestingly, Arm has earned a name for manufacturing cutting-edge processors in both cost and power efficiency. Coincidentally, China suffers from an electricity crisis. Still, it is unlikely that Softbank will make a profit for Alibaba, which is also a shareholder.
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