Alibaba bets big on AI with Nvidia tie-up, new data center plans

Alibaba is intensifying its focus on artificial intelligence, unveiling a major partnership with Nvidia, plans to expand its global data center network, and launching its most advanced AI models at the 2025 Apsara Conference. The collaboration with Nvidia will integrate Physical AI tools into Alibaba’s cloud platform, enhancing capabilities in data synthesis, model training, simulation, and testing for applications like robotics and autonomous driving. This move is part of Alibaba’s broader strategy to compete aggressively in the AI sector, which has driven its Hong Kong and U.S.-listed shares up nearly 10%. CEO Eddie Wu emphasized that Alibaba will increase its AI investment beyond the already committed 380 billion yuan ($53 billion). Alibaba also announced plans to open new data centers in Brazil, France, the Netherlands, and additional sites across Mexico, Japan, South Korea, Malaysia, and Dubai, expanding its existing network of 91 data centers in 29 regions. This expansion aims to meet growing demand from AI developers and enterprise customers worldwide, positioning Alibaba