Alibaba Announces Partnership with Nvidia with Physical AI

  • Alibaba and Nvidia announced a partnership at Alibaba Cloud’s Apsara Conference 2025 to integrate “physical AI” and speed development of embodied systems, assisted driving and other automation.
  • Alibaba Cloud’s AI platform will link with Nvidia’s physical-AI software to provide data preprocessing, synthetic-data generation, model training and evaluation, and robot reinforcement learning.
  • Physical AI refers to AI embedded in autonomous systems trained on high-fidelity simulations to understand 3D spatial relationships and act in the physical world.

Alibaba will partner with Nvidia on physical AI as the Chinese tech giant looks to speed development of embodied systems, assisted driving and other automation, according to China Daily.

Under the tie-up, Alibaba Cloud’s AI platform will integrate with Nvidia’s physical-AI software stack to offer developers data preprocessing, synthetic-data generation, model training and evaluation, and robot reinforcement learning, according China Daily. The combined toolkit is meant to streamline the path from concept to deployed systems by keeping data, models and control policies inside one workflow.

Physical AI blends software with autonomous hardware so models understand spatial relationships and 3D behavior, not just text or images. The approach relies on training with data from high-fidelity simulations that mirror real environments, a foundation both companies say can shorten build–test cycles for robots and other devices.

Alibaba framed the effort as part of a broader plan to bolster its AI capabilities across products and infrastructure. For Nvidia, the collaboration extends its role supplying software and tools for companies building autonomous systems.

Alibaba shares jumped—over 6% in Hong Kong to the highest since 2021 and up 9.3% in U.S. premarket—after the company pledged more AI investment beyond its 380 billion yuan three-year plan and rolled out new products, Bloomberg reported. The company touted progress toward “artificial superintelligence” and unveiled its latest large language model, Qwen3-Max, alongside broader AI updates, with year-to-date gains topping 107%.

The announcement came at Alibaba Cloud’s Apsara Conference 2025.

Need Deeper Intelligence on the AI Market?

AI Insider's Market Intelligence platform tracks funding rounds, competitive landscapes, and technology trends across the global AI ecosystem in real time. Get the data and insights your organization needs to make informed decisions.

Related Articles

WIRobotics Raises USD $68M in Series B Funding to Develop Humanoid Robotics Platform

Insider Brief South Korean robotics company WIRobotics has raised about $68 million in a Series B funding round as the company expands beyond wearable robotics

OpenAI Pursues Legal Action Against Apple as Codex Goes Mobile in Battle With Anthropic

OpenAI has integrated its Codex AI coding agent into the ChatGPT mobile app for iOS and Android, allowing developers to monitor live environments, review outputs,

Cisco Cuts 4,000 Jobs to Fund AI and Cybersecurity Push Despite Record Quarterly Revenue

Cisco is eliminating nearly 4,000 positions — approximately 5% of its global workforce — to restructure its cost base and redirect investment toward artificial intelligence

Stay Updated with AI Insider

Get the latest AI funding news, market intelligence, and industry insights delivered to your inbox weekly.

$ 0 M

Seed round tracked

Gitar — Code Validation

Get the Weekly Briefing

Funding analysis, market intelligence, and industry trends delivered to your inbox every week.

Need bespoke intelligence?

Our team combines real-time data with decades of sector experience to guide your decisions.

Subscribe today for the latest news about the AI landscape