Alibaba (BABA) is laying the groundwork for a potential listing of its chipmaking division, seeking to capitalize on strong investor interest in the limited group of companies aiming to challenge Nvidia (NVDA) in the market for AI accelerators, Yuan Gao and Debby Wu of Bloomberg reported, citing people familiar with the matter. As an initial step, the company plans to restructure the unit so that it is partially owned by employees. Following the restructuring, Alibaba reportedly intends to explore an initial public offering, though the timing has not been determined. Alibaba’s shares rose more than 5% in U.S. premarket trading.
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