Ruben Sprich/Reuters

Alibaba is setting up its own company to make a customized artificial intelligence chip, Reuters reported.

The chip, which is expected to be launched in the second half of 2019, could help Alibaba's fast-growing cloud and Internet of Things (IoT) businesses.

Alibaba's Tmall Genie, an AI-powered voice assistant, has been integrated with the company's interactive local services, such as Hema supermarket.

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Alibaba is reportedly setting up its own company to make a customized artificial-intelligence chip for its fast-growing cloud and internet businesses.

The Chinese e-commerce giant aims to launch its first self-developed AI inference chip in the second half of 2019. It could be used for autonomous driving, smart cities and logistics, Alibaba announced Wednesday at an event in Hangzhou, China, according to Reuters.

Alibaba is in "a unique position to lead real technology breakthroughs in disruptive areas, such as quantum and chip technology" due to its advantages in algorithms and data, Alibaba Chief Technology Officer Jeff Zhang said, according to CNN.

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