Alibaba Shares Jump Nearly 10% on Nvidia Partnership and Global AI Expansion

Alibaba Group announced a strategic partnership with Nvidia, alongside ambitious global data center expansion plans and the launch of new artificial intelligence products, signaling a major shift to position AI as a core business priority. The announcement, made at its annual Apsara Conference, led to a nearly 10% surge in Alibaba's Hong Kong-listed shares. This move underscores the e-commerce giant's commitment to competing aggressively in the rapidly evolving AI sector.

The collaboration with Nvidia centers on integrating Nvidia's Physical AI software stack into Alibaba Cloud's Platform for AI (PAI). This integration will enable capabilities such as data synthesis, model training, environmental simulation, and validation testing for applications in robotics, autonomous driving, and connected environments. While the partnership is software-focused, it highlights Alibaba's intent to leverage advanced AI tools.

Alibaba detailed plans to significantly expand its global data center footprint, with new facilities slated for Brazil, France, and the Netherlands. Additional centers are planned for Mexico, Japan, South Korea, Malaysia, and Dubai in the coming year, building on its existing network of 91 data centers across 29 regions. This expansion aims to meet the accelerating global demand from AI developers and enterprise customers.

Further demonstrating its AI commitment, Alibaba unveiled Qwen3-Max, its largest AI language model to date with over one trillion parameters, and Qwen3-Omni, a multimodal AI for immersive applications. Alibaba CEO Eddie Wu emphasized the rapid pace of AI development, stating, "The speed of AI industry development has far exceeded our expectations, and the industry’s demand for AI infrastructure has also far exceeded our expectations." He pledged to increase AI spending beyond the previously announced 380 billion yuan ($53 billion).

The company's strategic pivot and substantial investments have been well-received by investors, with its shares reaching a four-year high. Lian Jye Su, chief analyst at Omdia, noted that "The overseas data center investments will help expand Alibaba’s influence among international AI developers and enterprise users." This development occurs amidst ongoing geopolitical tensions regarding AI chip access, positioning Alibaba to strengthen its international AI presence.