# China’s richest province taps Alibaba to power its AI and chip push > Source: > Published: 2026-08-14 09:15:43+00:00 # China’s richest province taps Alibaba to power its AI and chip push Guangdong province deepens ties with China tech giant to boost digital innovation by focusing on AI, semiconductors and smart services [Coco Feng](/author/coco-feng)in Guangdong [Alibaba Group Holding](https://www.scmp.com/topics/alibaba?module=inline&pgtype=article), eyeing a broad digital upgrade spanning artificial intelligence, semiconductors, and smart public services. Under a strategic cooperation framework agreement signed on Thursday in Guangzhou, capital of Guangdong province in southern China, the Hangzhou-based firm planned to increase its investments in computing power, AI models, and digital services, according to a report by local state media Nanfang Daily. Provincial party secretary Huang Kunming thanked Alibaba “for its long-standing support of Guangdong’s economic and social development” and urged the company to “step up efforts in technology innovation, research development and investment” in the region, according to the report. He highlighted potential synergies with energy and telecommunications companies to strengthen computing power in Guangdong, alongside the deployment of AI models across consumer electronics, manufacturing equipment, and healthcare. Huang added that local goods could be further promoted through Alibaba’s online shopping and cross-border e-commerce platforms. Guangdong “has always been a core region” in Alibaba’s strategic development, CEO Eddie Wu Yongming said at the ceremony, pointing to the province’s economic clout, vibrant innovation ecosystem, and vast consumer market.