Alibaba Nvidia Partnership: Shares Leap on Data Center Push

Advanced | October 7, 2025

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What Happened: Alibaba Nvidia Partnership fuels a rally

On September 24, 2025, Alibaba’s shares jumped about 9.7% to a four‑year high after the company announced an Alibaba Nvidia Partnership alongside an ambitious plan to expand global data centers and roll out new AI products. Alibaba also unveiled Qwen3‑Max, a large language model with over one trillion parameters, positioning AI as a second growth engine next to e‑commerce. (Reuters)

Why the Alibaba Nvidia Partnership matters

The Alibaba Nvidia Partnership strengthens Alibaba’s AI stack with access to Nvidia’s platform and ecosystem while Alibaba also continues to develop its own chips and networking. Reuters has reported that Chinese tech firms—including Alibaba—remain eager for Nvidia’s China‑compliant processors even amid evolving export rules. (Reuters; Reuters)

At its Apsara event, Alibaba said it will open new data centers in Brazil, France, and the Netherlands as part of a broader international push to serve AI customers closer to where they operate. (Reuters video report) The company framed the build‑out as critical infrastructure for training and deploying next‑gen models and AI applications.

The Money Question: How big is the AI bet?

Follow‑on coverage highlights a multi‑year infrastructure plan that could exceed RMB 380 billion (≈$53B) for AI models and data center capacity, amplifying investor expectations for Alibaba Cloud. (Round‑up coverage: LiveMint; industry brief: Communications Today)

Market Take: Why investors liked it

Investors are betting that a stronger cloud + AI strategy can “move the needle” on revenue growth and margins, especially if Alibaba can sell foundation‑model services and AI‑ready compute to global customers. Momentum was helped by clear signals: new models (Qwen3‑Max), international data centers, and the Alibaba Nvidia Partnership—all in one news cycle. (Reuters company page roundup)

Vocabulary

Partnership (noun) — a formal collaboration between two parties.
Example: The Alibaba Nvidia Partnership could accelerate AI product delivery.
Data center (noun) — a facility housing computing and storage systems.
Example: Alibaba will add data centers in Brazil, France, and the Netherlands.
Ecosystem (noun) — a network of technologies and partners that work together.
Example: Nvidia’s ecosystem supports rapid AI development.
Parameters (noun) — learned values in an AI model.
Example: Qwen3‑Max reportedly exceeds one trillion parameters.
Export controls (noun) — government rules limiting technology sales abroad.
Example: Nvidia sells China‑compliant chips under U.S. export controls.
Compliant (adjective) — meeting required rules or standards.
Example: The H20 chip is compliant with current U.S. rules for China.
Build‑out (noun) — expansion of infrastructure or capacity.
Example: The data‑center build‑out aims to meet AI demand.
Foundation model (noun) — a large, general‑purpose AI model adaptable to many tasks.
Example: Alibaba plans to monetize foundation‑model services.
Move the needle (idiom) — to produce a noticeable impact.
Example: Investors think the partnership could move the needle on growth.
Rally (noun/verb) — a sharp rise in asset prices.
Example: Shares rallied nearly 10% after the announcements.

Discussion Questions (About the Article)

Which specific announcements drove Alibaba’s share price rally?
How does the Alibaba Nvidia Partnership change Alibaba’s AI roadmap?
Why are new data centers in Brazil, France, and the Netherlands strategically important?
What does the trillion‑parameter Qwen3‑Max suggest about Alibaba’s ambitions?
What execution risks could slow Alibaba’s AI expansion?

Discussion Questions (About the Topic)

Should cloud providers build global data centers before or after signing anchor customers?
How much do export‑control policies shape AI strategies in 2025?
What are the trade‑offs between buying Nvidia chips and designing in‑house silicon?
Will trillion‑parameter models dominate, or will smaller specialized models win?
How should investors judge AI announcements vs. real revenue traction?

Related Idiom

“Strike while the iron is hot.” — Take decisive action when conditions are favorable.
Use here: Alibaba is striking while the iron is hot by pairing AI model launches with a global data‑center push and the Alibaba Nvidia Partnership.

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This article was inspired by: Reuters 9/24/2025, Reuters video, and context from Reuters and Reuters.