Nvidia (NVDA) strikes partnership with Alibaba (BABA) in AI race

Nvidia (NVDA) has struck a partnership with Alibaba (BABA) to integrate its AI development tools—including robotics and autonomous driving—into Alibaba Cloud’s platform. The move deepens Alibaba’s push into artificial intelligence, following the recent launch of its trillion-parameter Qwen 3-Max language model.

Alibaba Cloud, which holds a 33% market share in China and posted 26% revenue growth, is boosting investment in AI infrastructure. The company’s T-Head unit is also advancing domestic chip development as Beijing restricts access to Nvidia’s products.

The partnership highlights Alibaba’s growing AI ambitions at a time when investors are weighing its competitive positioning against Nvidia’s premium valuation.