Alibaba rises over 8%, announces partnership with NVIDIA for Physical AI collaboration

Alibaba rises over 8%, announces partnership with NVIDIA for Physical AI collaboration

Alibaba Group Holding Limited (BABA) experienced a significant surge in pre-market trading, rising 8% to $178.01 after announcing its strategic partnership with NVIDIA. The stock price had closed at $163.08 on September 23, reflecting a 0.71% decline at the market close. The partnership aims to enhance Alibaba's AI capabilities, particularly in physical AI applications, by leveraging NVIDIA's advanced technology .

The collaboration includes the integration of NVIDIA's Physical AI software stack into Alibaba's Cloud Platform for AI. This stack can construct 3D replicas of real-world environments, generating synthetic data for training AI models in robotics, self-driving cars, and connected spaces. The financial terms of the deal were not disclosed, but this marks a significant collaboration between the world's leading developer of AI chips and a major cloud services and AI model developer .

The partnership is part of Alibaba's broader effort to strengthen its AI footprint globally. The company has outlined plans to increase spending on AI infrastructure, including a $53 billion investment over three years. This focus on AI comes as Alibaba competes with other Chinese tech giants in the rapidly developing AI space .

Alibaba's recent announcements also include plans for expanding its data center network. The company intends to open new facilities in Brazil, France, and the Netherlands, alongside planned data centers in Mexico, Japan, South Korea, Malaysia, and Dubai. This expansion will add to its existing network of 91 data centers across 29 regions globally. The new data centers will help Alibaba scale its AI offerings and cater to an increasing demand for AI infrastructure .

Alibaba's rapid expansion in AI and cloud computing is poised to strengthen its competitive position further, both in China and internationally. This shift towards AI aligns with the company's long-term vision of becoming a leader in digital transformation across industries .