Alibaba Group BABA is deepening its artificial intelligence ambitions by integrating Nvidia’s NVDA suite of “physical AI” development tools into its cloud platform, a move that strengthens ties between two of the most influential players in global AI. Alibaba shares rose on Wednesday following the announcement.The integration gives customers of Alibaba’s Cloud Intelligence unit direct access to Nvidia’s software for developing AI systems designed to interact with the physical world, including humanoid robots and autonomous vehicles, Bloomberg reported on Wednesday.The announcement was made at Alibaba’s annual Apsara developer conference in Hangzhou, where the company confirmed that its platform for AI will now feature Nvidia’s complete Physical AI software stack.The partnership combines Nvidia’s dominance in AI hardware and frameworks with Alibaba’s scale as one of China’s leading providers of cloud services and digital infrastructure.Alibaba also used the conference to outline its global expansion plans, unveiling its first data centers in Brazil, France, and the Netherlands, according to Reuters.Additional facilities are slated to open in Mexico, Japan, South Korea, Malaysia, and Dubai within the next year. These expansions will extend Alibaba Cloud’s footprint beyond its current 91 availability zones across 29 regions.The company also highlighted progress in its own AI models. It introduced Qwen3-Max, its most advanced large language model to date, boasting more than one trillion parameters.On benchmarks such as Tau2-Bench, Qwen3-Max outperformed rivals including Anthropic’s Claude and DeepSeek-V3.1.Alongside that, Alibaba debuted Qwen3-Omni, a multimodal system aimed at applications like smart glasses and intelligent cockpits, reinforcing its ambition to drive AI adoption across both consumer and enterprise markets.Recent reports indicate CEO Eddie Wu intends to further accelerate AI investment. Wu had previously pledged to expand Alibaba’s AI infrastructure spending beyond the 380 billion yuan ($53 billion) disclosed earlier this year, a commitment that has helped propel Alibaba’s shares to their highest level in nearly four years.Year-to-date, Alibaba’s stock has surged more than 92%, far outpacing the NYSE Composite index’s 13% gain. The rally reflects investor optimism in the company’s AI models, cloud growth, and resilient e-commerce operations.The company is also stepping up direct competition with U.S. tech giants.Last week, Alibaba introduced a high-performance processor through its semiconductor arm, T-Head, designed to rival Nvidia’s H20. State media reported the PPU chip matches the H20’s performance while consuming less power.Simultaneously, Alibaba’s Tongyi Lab launched a lightweight open-source “deep research” agent, an alternative to OpenAI’s Deep Research, already embedded into services such as Amap and a legal research platform.Price Actions: BABA stock was trading higher by 9.26% to $178.18 premarket at last check Wednesday.

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Alibaba Group is enhancing its AI capabilities by integrating Nvidia's development tools into its cloud platform, announced at the Apsara developer conference. This partnership allows Alibaba's Cloud Intelligence unit to access Nvidia's software for creating AI systems for robots and self-driving cars. Alibaba also revealed plans for global expansion with new data centers and introduced its advanced AI models, Qwen3-Max and Qwen3-Omni. Following the announcement, Alibaba's stock rose by 9.26%, reflecting investor confidence in its AI and cloud growth strategies.

- Alibaba Group is enhancing its AI capabilities by integrating Nvidia’s physical AI development tools into its cloud platform, strengthening their partnership.  
- This integration allows Alibaba Cloud customers to access Nvidia’s software for developing AI systems for humanoid robots and autonomous vehicles, announced at Alibaba’s Apsara developer conference.  
- Additionally, Alibaba is expanding globally with new data centers and has introduced advanced AI models, reflecting a significant increase in its stock value amid growing investor optimism.

Alibaba Partners With Nvidia To Power Robots And Self-Driving Cars