Alibaba Group Holding Limited (BABA) Refutes NVIDIA AI Chips Smuggling Claims

Alibaba Group Holding Limited (NYSE:BABA) is one of the best AI stocks to buy for 2026, according to billionaire David Tepper. On May 8, Alibaba Group Holding Limited (NYSE:BABA) was on the defensive, refuting claims that it was one of the beneficiaries of billions of dollars’ worth of Super Micro computer servers containing Nvidia chips smuggled into China.

Alibaba Group Holding Limited (BABA) Refutes NVIDIA AI Chips Smuggling Claims

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Bloomberg reported that a key company behind Thailand’s national AI effort had smuggled the servers containing Nvidia chips and sold them to Alibaba, among other end customers. The allegations follow US prosecutors reiterating early in the year that Super Micro’s co-founder had worked to divert AI semiconductors in violation of US trade rules.

Alibaba insists it has no business relationship with Super Micro, OBON, or any third-party brokers that deal in servers with Nvidia chips under US control. It has also refuted claims that it is involved in the alleged smuggling activities. The Chinese AI powerhouse insists it maintains a compliance-first approach with its data center operations.

Alibaba Group Holding Limited (NYSE:BABA) is a leading AI player, developing its own large language models, integrating AI into its e-commerce and logistics, and offering cloud-based AI services. Its strategy centers on open-source approaches and cloud computing to boost adoption.

While we acknowledge the risk and potential of BABA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BABA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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