Alibaba and NVIDIA Forge Groundbreaking Partnership in Physical AI

Hangzhou, Sept 24, 2025 — At the 2025 Alibaba Cloud Summit, Alibaba officially announced a landmark partnership with NVIDIA to advance Physical AI, a cutting-edge field that bridges artificial intelligence with the physical world.

The collaboration will span every aspect of Physical AI research and application, including synthetic data processing, model training, environment simulation with reinforcement learning, and rigorous model validation and testing. Physical AI—an emerging frontier of AI—aims to integrate multimodal perception, spatial reasoning, and physical law cognition, enabling machines to interact seamlessly with the real world.

At the summit, Wu Yongming, Director and CEO of Alibaba Group and Chairman & CEO of Alibaba Cloud Intelligence, emphasized the transformative potential of AI. He projected that in the near future, the number of AI agents and robots could exceed the global human population, working alongside people and reshaping the physical world at an unprecedented scale.

Wu described large models as the next-generation operating system and AI cloud as the next-generation computer, predicting that ultimately only a handful—perhaps five or six—of global supercloud platforms will dominate the market. To secure its place in this future, Alibaba is driving forward a massive ¥380 billion investment in AI infrastructure, with plans to commit even greater resources.

Looking ahead to the era of ASI (Artificial Superintelligence), Wu forecast that compared to 2022—hailed as the “first year of GenAI”—the energy consumption of Alibaba Cloud’s global data centers will surge tenfold by 2032.

Following the announcement, Alibaba’s Hong Kong-listed shares surged more than 9%, underscoring investor confidence in the company’s bold vision and strategic partnership with NVIDIA.