Alibaba officially announces partnership with Nvidia on Physical AI, covering synthetic data processing, model training, environment simulation reinforcement learning, and model validation testing.

Alibaba officially announces partnership with Nvidia on Physical AI, covering synthetic data processing, model training, environment simulation reinforcement learning, and model validation testing.

Alibaba Group Holding Limited (NYSE: BABA) and NVIDIA Corporation (NVDA) have announced a strategic partnership focused on advancing Physical AI, a new frontier in artificial intelligence. The collaboration will encompass synthetic data processing, model training, environment simulation, and reinforcement learning, among other key areas. This partnership signifies a significant step towards the development of robust and scalable AI infrastructure, with potential implications for both companies and the broader tech industry.

Under the agreement, Alibaba will leverage NVIDIA's advanced hardware and software solutions to enhance its AI capabilities. NVIDIA, known for its cutting-edge GPUs, will provide the necessary infrastructure and technology to support Alibaba's ambitious AI initiatives. This collaboration is set to boost Alibaba's AI spending beyond its previously announced $50 billion target, aligning with the company's goal to become a leading full-stack AI service provider .

The partnership will also involve the construction and deployment of AI data centers, with NVIDIA committing up to $100 billion in progressive investment to support the deployment of at least 10 gigawatts of compute capacity. This substantial investment underscores the importance of AI infrastructure in the development and scaling of AI applications. The first gigawatt of AI data centers is expected to come online in the second half of 2026, utilizing NVIDIA’s Vera Rubin platform .

Alibaba's commitment to AI development is evident in its recent unveiling of the open-source large language model, Qwen3-Omni. This model can process text, images, audio, and video, highlighting Alibaba's dedication to pushing the boundaries of AI technology. The partnership with NVIDIA will likely accelerate Alibaba's AI capabilities, enabling it to stay competitive in the global AI landscape.

The collaboration between Alibaba and NVIDIA is a strategic move that positions both companies at the forefront of AI innovation. It reflects the growing importance of AI in various industries and the need for robust infrastructure to support its development and deployment. As AI continues to evolve, partnerships like this one will be crucial in driving technological advancements and shaping the future of the industry.