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Alibaba Expands European Data Centres and Unveils New AI Chip

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Alibaba is expanding its global cloud infrastructure with plans to establish new data centre regions in Europe, while also developing larger artificial intelligence models and a new AI chip aimed at strengthening its position in the fast-growing technology market.

The Chinese technology group announced on Wednesday that Alibaba Cloud will establish its first cloud regions in Finland, the Netherlands and Turkey. The company also plans to expand its data centre presence in Germany, France, the UAE, Malaysia and Hong Kong over the next 12 months.

Eddie Wu, CEO of Alibaba Group, said machine-based reasoning currently represents less than 3 per cent of total human thinking capacity but could eventually reach levels far beyond current capabilities.

“With this in mind, our target is that by 2032, the global data centre capacity operated by Alibaba Cloud will surpass 20GW, fueling the industry’s exponentially rising demand for AI,” Wu said.

The planned expansion is expected to increase Alibaba Cloud’s computing capacity as businesses and governments accelerate investment in AI systems that require greater processing power and data storage.

Alibaba is also expanding the capabilities of its Qwen family of AI models. Wu said on Tuesday that future versions could contain between five trillion and 10 trillion parameters, potentially making them several times larger than the biggest Chinese models currently available.

The Qwen models have become prominent in China’s AI sector and are among the most widely downloaded Chinese-developed AI models globally.

The company also introduced a new AI chip at its annual conference. Wu described the Zhenwu V900 as “the most powerful AI chip in China today”.

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The chip is being developed as China faces continued restrictions on access to advanced semiconductors from the United States. The Zhenwu V900 is widely reported to offer roughly twice the performance of Nvidia’s H20 chip, which was designed for the Chinese market.

US export controls have restricted Chinese companies’ access to some advanced AI processors, encouraging Beijing and domestic technology firms to accelerate development of locally produced alternatives.

Alibaba’s announcement comes as China seeks to expand its domestic AI infrastructure while competing with technology companies in the United States and other major markets.

The company said the overseas data centre expansion would help provide additional computing resources for customers in several regions and support growing demand for cloud and AI services.

The announcement also comes ahead of an expected meeting between US President Donald Trump and Chinese President Xi Jinping in Washington this week. Trade, semiconductor restrictions and concerns over the national security implications of artificial intelligence are expected to be among the issues discussed.

Alibaba’s investment plans highlight the growing connection between cloud infrastructure, advanced chips and AI model development as technology companies compete to build increasingly powerful systems.

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Anthropic Revenue Jumps to $17 Billion as AI Spending Drives Up Costs Ahead of Nasdaq IPO

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Anthropic reported a 47 per cent increase in third-quarter revenue to $17 billion (€15.1 billion), but returned to an operating loss as spending on computing capacity and long-term infrastructure commitments mounted ahead of its planned Nasdaq listing.

The US company behind the Claude artificial intelligence models recorded revenue 12 times higher than a year earlier, according to an updated prospectus filed with US regulators on Monday. However, it reported an operating loss of $567 million (€506 million), compared with a profit of $974 million (€870 million) in the previous quarter.

Anthropic attributed part of the reversal to $5 billion (€4.46 billion) spent on short-term computing capacity after demand exceeded the company’s existing long-term arrangements. The filing said this capacity currently costs significantly more.

The company also recorded a $2 billion (€1.78 billion) non-cash charge linked to a programme matching employee donations. Adjusted operating income reached $2.5 billion (€2.23 billion), representing a 15 per cent margin, down from 19 per cent in the second quarter.

Anthropic’s net loss widened to $23.3 billion (€20.8 billion), compared with $12.1 billion (€10.8 billion) a year earlier. During the first nine months of the year, it recorded losses of $104 billion (€92.9 billion) against revenue of $33.2 billion (€29.6 billion). The company said $94.3 billion (€84.2 billion) of the losses resulted from non-cash accounting charges as the value of convertible notes increased.

The prospectus also disclosed approximately $895.4 billion (€800 billion) in purchase and lease commitments, largely related to computing infrastructure. The commitments are almost seven times the $131.8 billion (€117 billion) Anthropic held in cash and short-term investments at the end of September.

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Around $70 billion (€62.5 billion) is due within 12 months, while approximately $450 billion (€402 billion) falls due by the end of 2030. A further $214 billion (€191 billion) is cancellable or subject to conditions.

The company warned that customers breaching its usage rules or commercial terms accounted for between 5 and 7 per cent of revenue during the first nine months. It said enforcement measures could reduce revenue and future growth.

Anthropic also disclosed potential risks from rapid advances in artificial intelligence, saying it might soon reach its own threshold for dramatically accelerated progress in which AI systems help develop more capable models. The company warned that such developments could pose significant safety concerns, although it has not classified any existing model as having reached that threshold.

The updated filing comes as Anthropic prepares to list on Nasdaq under the ticker ANT. It has not yet announced a share price range, but securities rules require publication of a prospectus at least 15 days before a company begins its investor roadshow.

Anthropic could therefore begin marketing its shares as early as next week, with a listing possible from the week of November 16.

Investor expectations for the company’s valuation have reportedly eased to around $1.5 trillion (€1.33 trillion), down from earlier estimates of approximately $2 trillion (€1.78 trillion), following a technology stock sell-off linked to concerns about AI investment costs. The revised figure would still exceed the $965 billion valuation set during its private funding round in May.

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Argentina’s Milei Courts AI Data Centre Investors With Tax Incentives and Light Regulation

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Argentina’s President Javier Milei is seeking to turn Patagonia into a major destination for artificial intelligence data centres, offering international technology companies tax incentives and a promise of minimal regulation as he competes for billions of dollars in investment.

While communities in parts of the United States and Europe are questioning the environmental and electricity costs of large data centres, Milei’s government is actively encouraging their development. The president told the US Chamber of Commerce in Washington last month that Argentina would not regulate artificial intelligence, saying: “We are going to leave it free.”

The country’s southern Patagonia region offers several advantages for energy-intensive facilities, including large areas of available land, cooler temperatures, strong winds and access to natural gas from the Vaca Muerta shale formation.

According to visitor records obtained by The Associated Press, Milei and his aides have held meetings with technology industry figures, including venture capitalist Peter Thiel and representatives of OpenAI, Amazon, Google and Oracle.

Polish renewable energy company Green Capital plans to build a $3 billion data centre in Patagonia, which would provide computing capacity to major technology companies. The project has yet to secure a customer. The company has leased 130,000 hectares of land from 14 local landowners.

Green Capital’s Marta Zlotkowska said Patagonia had emerged as the preferred location after the company compared potential sites worldwide, citing access to land and energy resources.

Tax incentives and questions over benefits

Milei is also promoting a scheme that would reduce corporate income tax from 25% to 15% for investments of at least $1 billion in artificial intelligence and other emerging industries. The proposal is awaiting approval by Argentina’s Senate.

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However, critics question how much local communities would gain from the projects. Data centres typically employ relatively small workforces, while the proposed incentives do not require companies to reserve computing capacity for Argentine users or disclose their energy and water consumption.

Environmental concerns are particularly strong near Trelew, a city close to Green Capital’s proposed site. Residents say they have limited information about the project’s water requirements, energy sources and potential impact on local resources. Environmental assessments remain underway and permits have not yet been secured.

If operated continuously at its projected peak capacity, the planned facility would consume around 2.7 times the electricity used by Buenos Aires throughout 2025, according to an AP calculation. Green Capital says it intends to generate its own power through wind, solar and gas-fired facilities.

Opposition grows over regulatory safeguards

Some technology experts warn that Milei’s opposition to AI regulation could leave the country exposed to risks involving surveillance, cyberattacks and personal data. Officials have also acknowledged uncertainty over rules governing copyrighted material used to train AI systems and the transfer of personal information abroad.

In Trelew, residents have organised a campaign called “Trelew Free of Data Centres”, reflecting growing concern over the environmental consequences.

Despite the opposition, some local landowners see the projects as an opportunity to diversify income as drought, rising costs and declining wool production put pressure on traditional sheep farming.

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Binance Investigates $6.3 Billion Crypto Theft as North Korean Hackers Suspected

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Cryptocurrency exchange Binance is investigating a security breach that resulted in an estimated $6.3 billion in stolen digital assets, in what could become the largest cryptocurrency theft on record. Early findings point to a compromised employee laptop and possible involvement by a North Korean hacking group.

The incident unfolded over less than four hours, with attackers gaining access to several of Binance’s online wallets and transferring funds to addresses under their control.

Binance, the world’s largest cryptocurrency exchange, said its initial investigation suggested that a compromised laptop belonging to a DevOps engineer may have provided an entry point. The attackers allegedly used access to a service container to submit unauthorised withdrawal transactions.

The company later stressed that the breach involved multiple factors and was more complex than initially understood. It said there was no evidence that wallet private keys had been exposed.

Binance temporarily suspended deposits and withdrawals while carrying out security checks. It also revoked authorisation for the affected addresses and began working with law enforcement agencies and blockchain intelligence companies to trace and recover the assets.

Billions in assets frozen

The scale of the breach became clearer on Friday as Binance issued a series of updates. The exchange initially reported that $2.54 billion had been frozen, before raising the figure to $3 billion.

Blockchain data infrastructure company Bitquery estimated that Binance’s withdrawal system had authorised transfers worth approximately $6.3 billion from 17 hot wallets between Thursday night and early Friday morning.

Stablecoin issuers Tether, Circle and Arbitrum, alongside several smaller companies, helped freeze affected assets to prevent further movement. Bitquery estimated that the attackers had exchanged around $729 million in stablecoins before the freezes took effect.

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Despite the intervention, approximately $3.1 billion remained under the attackers’ control, primarily in Ether and Bitcoin, according to the company’s analysis. The stolen funds were distributed across nine blockchains, with Ethereum, Bitcoin and TRON among the networks most affected.

Binance said it would cover all losses using company funds and had reserved approximately $6.34 billion for the incident. It also said it had begun recovering affected assets for customers.

The exchange pledged to publish a detailed technical report once the investigation is complete and the findings have been verified. It also plans to release an updated proof of reserves after security measures have been completed.

North Korean group suspected

Blockchain intelligence and cybersecurity firm TRM Labs has attributed the attack to TraderTraitor, a hacking group linked to North Korea.

“Based on robust on- and off-chain intelligence, we make this judgment with high confidence,” TRM Labs said.

The group has previously been linked to major cryptocurrency thefts. The FBI identified TraderTraitor as responsible for the $1.5 billion Bybit exchange hack in February 2025.

Binance has not publicly confirmed the identity of the attackers. Its investigation remains ongoing, with law enforcement agencies and blockchain intelligence partners assisting efforts to trace and recover the remaining funds.

The incident has renewed concerns about the security of cryptocurrency exchanges, particularly the risks associated with online wallets and access to internal technology systems.

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