Alibaba Group Holdings Ltd. has announced plans to integrate Nvidia Corp.’s suite of physical AI tools into its cloud software platform. This move will allow Alibaba’s Hangzhou-based cloud intelligence division to offer clients the ability to develop AI for practical applications, including humanoid robots and self-driving vehicles. The partnership brings together the expertise of two major AI players, combining Nvidia’s US-based chip technology with Alibaba’s cloud computing capabilities in China. Eddie Wu hints at Alibaba’s commitment to increasing its future investment in AI During its recent annual Apsara developer conference in Hangzhou, Alibaba mentioned that its AI Platform will comprise the entire Nvidia Physical AI software stack. This integration is intended to upgrade the tech giant’s services to developers. The announcement came just after Eddie Wu, the CEO of Alibaba Group, announced his intentions to increase Alibaba’s AI infrastructure investment further. The CEO’s decision was triggered by the surge in the company’s stocks, recording the highest level ever in nearly four years. He said he will increase the investment to surpass the earlier target of 380 billion yuan ($53 billion). Interestingly, the key factor behind the company’s shares hitting the highest point in nearly four years was its commitment to significant investments in AI. This signaled a growing trend among tech companies showing dedication to making substantial spending in the era of technological advancement. Considering this commitment, Wu speculated that in the next five years, tech companies would have contributed around $4 trillion in investment in AI worldwide. Therefore, the CEO asserted that Alibaba must stay competitive. For Alibaba’s cloud division , Wu hinted at its plan to extend its operation with its first new data centers in Brazil, France, and the Netherlands in 2026. Notably, this division already offers services from the US to Australia. The CEO shared these predictions while highlighting plans to launch Qwen models and integrate full-stack AI technology in their operations. This demonstrates the tech giant’s heightened desire to develop improved services and crucial infrastructure, such as chips, to support the tech ecosystem. Following its tech-focused determination, the company’s shares soared roughly 7.8% in Hong Kong. This boosted Chinese chipmakers, ACM Research (Shanghai) Inc., and NAURA Technology Group Co.’s shares by 15% and 10% respectively. Tech companies focus on advancing technology in the AI boom era The rise in Alibaba’s shares in Hong Kong, along with gains in Chinese chipmakers, shows the positive response from investors to the company’s AI announcement. Despite this rapid growth and investment in AI, some skeptics have concerns about the likelihood of a bubble developing. Even with this, the markets still view these spending plans as a sign of increased business confidence in technology. Wu commented on the topic during a developer conference in Hangzhou. Based on his argument, the tech industry has grown faster than expected, with the demand for AI infrastructure surging beyond expectations. Concerning this scenario, the CEO pointed out, “We are moving forward with our investment of 380 billion in AI infrastructure and plan to invest even more.” Apart from Alibaba, other leading Chinese tech companies, from Huawei Technologies Co. to Tencent Holdings Ltd., have also demonstrated their commitment to significant investments in AI like never before. To achieve this, tech companies have begun collaborating with US tech giants and making huge investments in developing and promoting a technology that can influence global power dynamics. These tech giants include OpenAI and Meta Platforms Inc. If you're reading this, you’re already ahead. Stay there with our newsletter .
