Nvidia is currently on a significant dealmaking spree. Just days after committing to a five billion dollar stake in Intel and a massive one hundred billion dollar investment in OpenAI, the GPU maker has now announced a partnership with China’s Alibaba.
Alibaba stated that it is integrating Nvidia’s AI development tools for robotics, self-driving cars, and connected spaces into its Cloud Platform for AI. The Chinese e-commerce giant will offer Nvidia’s Physical AI software stack. This technology can construct three-dimensional replicas of real-world environments to generate synthetic data, which is then used to train AI models for applications in robotics, autonomous vehicles, and smart spaces like factories and warehouses.
While the financial terms of the deal were not disclosed, this marks a significant collaboration. It brings together the world’s foremost developer of chips optimized for training AI models and a major cloud services and AI model developer.
This partnership comes as Alibaba focuses on expanding its AI business alongside its core e-commerce operations. The company announced it is increasing its spending on AI technology beyond its previous fifty billion dollar budget. It also outlined plans to launch its first data centers in Brazil, France, and the Netherlands. Alibaba is expanding its data center presence to a total of 91 locations across 29 regions globally.
In a related announcement, Alibaba also unveiled the latest version of its Qwen family of large language models, called Qwen 3-Max. The company claims this is its largest and most capable model to date. It was trained on one trillion parameters and is well-suited for coding and agentic applications.