Alibaba Partners with Nvidia to Advance Next-Gen Physical AI

Alibaba Cloud has announced a strategic partnership with Nvidia to accelerate next-generation Physical AI applications. The collaboration will provide developers with tools to advance humanoid robotics and other Physical AI solutions. This marks a major milestone in the AI industry. The partnership was revealed during the Alibaba Apsara Conference 2025. The company also announced plans to expand its global data center network. New facilities are set to open in Brazil, France, and the Netherlands. With further expansion into Mexico, Japan, South Korea, Malaysia and Dubai over the coming year. Regional service centers in Indonesia and Germany will provide multi-language support around the clock. 

Driving AI Innovation with Physical AI

Alibaba Cloud Platform for AI (PAI) will integrate Nvidia full Physical AI software stack. It is creating a cloud native environment for developers. This integration allows faster experimentation in humanoid robotics. With AI-powered automation and physical intelligence applications. By combining Alibaba cloud capabilities with Nvidia AI software. The partnership aims to accelerate the creation of next-generation AI agents that interact with the physical world.

Dr. Feifei Li, President of International Business at Alibaba Cloud, highlighted the significance of this collaboration. She said the move is part of a broader effort to equip businesses. With full stack AI solutions that enable innovation, efficiency and growth. “We are helping partners and customers design, launch, and scale AI applications that can unlock real-world value,” she said.

Supporting AI Startups and Global Innovation

Alibaba Cloud launched the AI Catalyst Program to support global AI startups. Participating companies receive guidance from industry experts, access to AI tools and marketing support. Benefits include up to 2 billion free tokens on Model Studio. Alibaba Cloud’s generative AI platform and $120,000 in cloud credits are helping startups rapidly scale AI projects.

Several global companies are already benefiting from Alibaba Cloud AI technologies. AstraZeneca China used the Qwen LLM and Model Studio to develop an adverse event reporting tool. The AI solution scans scientific publications and generates detailed reports. It is improving efficiency by 300% compared to manual review.

Meanwhile, Shiseido China has strengthened its digital infrastructure using Alibaba Cloud Cloud Threat Detection and Response (CTDR) platform. Advanced AI analyzes security alerts in real time. Identifying threats and optimizing response. Shiseido’s CITO Jerry Lin emphasized that AI-driven security enables the company to focus on growth while keeping operations safe.

In Japan, GladCube is leveraging Alibaba Cloud to accelerate digital marketing solutions. The company integrates Alibaba visual generation model Wan into its video production platform, Dra Vis. This AI-powered system enables high-quality video creation quickly. While the AvaTwin AI avatar service enhances corporate communications. GladCube’s CEO Hiroki Kaneshima described the partnership as a leap forward in operational efficiency and creative output.

Real-World Applications Across Industries

Alibaba Cloud AI solutions extend beyond business efficiency. By integrating Physical AI and generative AI models. The company supports innovations in sports, finance, healthcare and marketing. For example, Alibaba is partnering with the International Skating Union to host the Sports Data Hack Challenge. A European AI hackathon aiming to create practical AI-driven sports solutions.

Similarly, Tokyo-based startup FLUX developed a Japanese language LLM, FLUX-Japanese-Qwen, using Alibaba Cloud AI infrastructure. The model applies a “Pinpoint-tuning” method to maintain reasoning capabilities. While fine tuning for financial and regulatory contexts. This enables financial professionals to access accurate, context-aware insights efficiently.

Looking Ahead

Alibaba Cloud partnership with Nvidia and its global AI initiatives illustrate the company’s commitment. To drive innovation in digital and physical AI. By combining cloud infrastructure, generative AI and Physical AI tools. Alibaba is positioning itself as a global leader in AI development. It is empowering businesses and developers to create applications. That bridges the gap between the digital and real worlds.