At its annual conference in Hangzhou, Alibaba announced a strategic alliance with Nvidia, aimed at integrating the full suite of Physical AI software into Alibaba Cloud. The collaboration will grant developers access to tools spanning data generation, model training and validation, with a focus on applications that require direct interaction with the physical world—such as robotics, autonomous vehicles, and industrial automation systems. The announcement comes against the backdrop of U.S. trade restrictions on China, though Nvidia maintains a special agreement that allows the sale of certain chips in the country. Following the news, Alibaba’s shares rose more than 9% on the Hong Kong Stock Exchange, reflecting strong market expectations.

The agreement underscores Alibaba’s ambition to position itself at the forefront of the so-called “era of superintelligence,” backed by multibillion-dollar infrastructure investments. For Nvidia, it marks an expansion of its reach in a market eager to reduce reliance on Western suppliers, yet still dependent on its technology. The context is particularly relevant as the Physical AI sector continues to grow, with its value expected to multiply over the next decade. Demand in manufacturing, logistics, and healthcare shows no signs of slowing. This alliance consolidates the presence of both companies in an expanding field and, above all, demonstrates that—despite geopolitical tension—technological cooperation finds a way.