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Alibaba integrates Nvidia AI into cloud platform

by admin September 24, 2025
September 24, 2025
Alibaba integrates Nvidia AI into cloud platform

Alibaba Group is expanding its artificial intelligence push by integrating Nvidia’s physical AI tools into its cloud platform, marking one of the most significant collaborations between a Chinese cloud provider and a US chipmaker.

The move reflects both the surging global demand for AI infrastructure and Alibaba’s ambition to dominate AI development in areas such as humanoid robotics and autonomous vehicles.

The announcement came at Alibaba’s annual Apsara developer conference in Hangzhou, where the company also disclosed an increase in its AI investment plans.

Nvidia partnership brings physical AI to Alibaba Cloud

Alibaba Cloud Intelligence will now include Nvidia’s full suite of physical AI development software as part of its Platform for AI.

These tools allow customers to build systems that operate in the physical world, from robots to driverless cars, rather than just digital or text-based applications.

Nvidia, already the leading designer of chips powering AI models, will gain direct access to developers in China through this partnership.

For Alibaba, the collaboration ensures that its cloud ecosystem remains competitive against domestic rivals like Huawei Cloud and Baidu AI Cloud, while also strengthening its appeal to international clients.

AI investment scaled up with new funding commitment

During the conference, Chief Executive Officer Eddie Wu announced that Alibaba is increasing its investment in AI infrastructure beyond the previously declared 380 billion yuan ($53 billion).

The company is directing more resources into high-performance computing, large-scale model training, and AI-powered applications.

The fresh capital commitment underscores Alibaba’s intention to secure a leading role in AI, a sector that Beijing has also identified as critical to national economic strategy.

Following the announcement, Alibaba’s shares reached their highest level since late 2021, signalling market confidence in its AI plans.

Apsara developer conference highlights Alibaba’s AI strategy

The integration of Nvidia’s tools was unveiled at Alibaba’s Apsara developer conference, its annual showcase for cloud and technology services.

By incorporating Nvidia’s physical AI stack, Alibaba is offering developers a broader range of options, which now extends from generative AI to robotics and advanced automation.

The company highlighted that these capabilities will be key to industries such as logistics, manufacturing, and mobility, where real-world AI applications are becoming increasingly vital.

The timing also coincides with the surge of global competition among tech giants to secure chip access and AI infrastructure, areas that have faced growing geopolitical scrutiny.

Shares rise as cloud unit takes centre stage

Alibaba’s decision to scale up its AI spending and deepen collaboration with Nvidia has had a direct impact on its market performance.

The announcement helped drive its shares to the strongest level in nearly four years.

Analysts noted that the boost reflects investor expectations that Alibaba Cloud, long considered a strategic growth unit, could regain momentum after a period of restructuring and management changes.

The company’s pivot toward AI-centric services places its cloud division at the centre of future growth, at a time when demand for computing power and AI development platforms is accelerating worldwide.

The post Alibaba integrates Nvidia AI into cloud platform appeared first on Invezz

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