Alibaba Partners with Nvidia to Enhance “Physical AI” by Integrating Comprehensive Tools into Alibaba Cloud’s PAI Platform

Alibaba and Nvidia have launched a significant collaboration in Physical AI, announced during the 2025 Apsara Conference on September 24, 2025. This partnership focuses on enhancing real-world applications such as robotics and assisted driving through synthetic data generation and model training. Alibaba Cloud’s PAI will integrate Nvidia’s Physical AI software, offering an end-to-end toolchain for enterprise customers. This inclusion aims to streamline development cycles for embodied agents and advanced driver-assistance systems (ADAS). CEO Wu Yongming highlighted that large AI models represent the “next operating system,” as Alibaba commits to a RMB 380 billion ($53 billion) AI infrastructure plan, projecting a tenfold increase in data center power consumption by 2032 to meet growing AI demands. The collaboration positions Alibaba as a leader in the Physical AI domain, enabling faster deployment of applications in industrial automation and logistics. Following the announcement, Alibaba’s shares surged over 9%. No specific timelines or pilots were disclosed.

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