- 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.
