Graphics chipmaker NVIDIA is making a series of strategic moves: following its commitment to invest $5 billion in Intel and a massive $100 billion stake in OpenAI, the company has now partnered with China's Alibaba.

Alibaba announced on Wednesday that it is incorporating NVIDIA's AI development tools into its AI cloud platform, specifically for robotics, autonomous vehicles, and smart spaces. The Chinese e-commerce giant will offer NVIDIA's physics-based AI software stack, capable of creating 3D replicas of real-world environments to generate synthetic data for training AI models in robotics, self-driving cars, or intelligent spaces like factories and warehouses.

Financial terms of the deal were not disclosed, but this partnership marks a significant milestone by bringing together a global leader in AI model training chip development and a major cloud services and AI model provider.

The deal comes at a time when Alibaba is expanding beyond its core e-commerce business into AI. On Wednesday, the company stated it is increasing its AI-related spending beyond its previous $50 billion budget and outlined plans to launch its first data centers in Brazil, France, and the Netherlands. It is also building additional data centers across more countries, extending its global data center footprint across 91 locations in 29 regions.

In addition, Alibaba unveiled the latest version of its Qwen large language model family on Wednesday—Qwen 3-Max. The company claims this model is its "largest and most powerful to date," trained on one trillion parameters, making it ideal for coding and agent applications.