It has been reported that Alibaba is gearing up to acquire a substantial quantity of MI308 AI chips from AMD, with the purchase volume projected to range between 40,000 and 50,000 units. This move underscores Alibaba's robust demand within the artificial intelligence sector and its unwavering commitment to technological advancement. The AMD MI308 represents a compliant AI chip that has been specifically tailored to cater to the needs of the Chinese market. In July, it secured export clearance from the U.S. government and, alongside NVIDIA's H20, has been classified as a compliant product. When pitted against the H20, the MI308 emerges as a more cost-effective and secure option. It boasts higher memory configurations and comes at a price point that is roughly 15% lower. Moreover, it has not been embroiled in any security-related controversies. NVIDIA, on the other hand, has announced its intention to introduce the H200 to the Chinese market in mid-February, just prior to the Lunar New Year. Initially, the company plans to fulfill orders from its existing inventory, with an anticipated shipment volume ranging from 40,000 to 80,000 units. Alibaba's procurement strategy not only signifies a deepening of its strategic layout in the AI domain but is also poised to expedite its technological progress. Furthermore, this move has the potential to exert an influence on industry chip demand and supply chains.