Nvidia is deepening its global partnerships with a new collaboration with China’s Alibaba, as the chipmaker continues its aggressive expansion in the AI space. Just days after announcing a $5 billion investment in Intel and a $100 billion commitment to OpenAI, Nvidia has now teamed up with Alibaba to integrate its Physical AI development tools into the Chinese tech giant’s Cloud Platform for AI. Under the agreement, Alibaba will offer Nvidia’s Physical AI software stack, which enables the creation of detailed 3D digital replicas of real-world environments. These virtual models can be used to generate synthetic data for training AI systems in complex, real-world scenarios—particularly valuable for applications in robotics, autonomous vehicles, and smart industrial spaces like factories and warehouses. While financial details of the deal were not disclosed, the partnership marks a major milestone in the ongoing collaboration between two of the most influential players in the global AI ecosystem. Nvidia, known for its GPUs that power most modern AI training, is now extending its reach into physical AI development, while Alibaba strengthens its position as a leading cloud and AI infrastructure provider in Asia and beyond. The move aligns with Alibaba’s broader strategy to accelerate its AI ambitions, diversifying beyond its core e-commerce business. The company announced it is increasing its investment in AI technology beyond its previous $50 billion commitment, signaling a long-term focus on innovation in artificial intelligence. Alibaba also revealed plans to expand its global data center footprint, launching new facilities in Brazil, France, and the Netherlands. The company now operates data centers in 91 locations across 29 regions worldwide, enhancing its ability to deliver low-latency AI services globally. In addition, Alibaba introduced the latest version of its Qwen series of large language models—Qwen 3-Max. The company claims it is its largest and most capable model yet, trained on 1 trillion parameters. Alibaba highlights its strong performance in coding tasks and agentic workflows, where AI systems can autonomously plan and execute multi-step actions. The collaboration with Nvidia underscores the growing importance of physical AI—where digital simulations are used to train real-world AI systems—and positions Alibaba as a key player in shaping the future of AI infrastructure in Asia and globally.