Alibaba Group Holding (NYSE:BABA) and Bayerische Motoren Werke AG (OTC:BMWKY) announced an expanded strategic partnership in China on Wednesday. The companies proposed accelerating the integration of Alibaba’s Qwen large language model (LLM) into BMW’s next-generation intelligent vehicles, the Neue Klasse models.
The new BMW Intelligent Personal Assistant (IPA) will integrate a bespoke AI engine co-developed by the companies, Alizila reports.
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The AI engine will be based on the Yan AI, a Qwen-empowered smart cockpit AI solution developed by Banma, Alibaba’s intelligent cockpit solution provider. Starting in 2026, the AI-enhanced IPA will debut in BMW Neue Klasse models produced in China.
BMW is building a new intelligent personal assistant with enhanced voice recognition and trip planning features, Bloomberg reports. The in-car AI agent can offer parking, nearby restaurant recommendations, and real-time traffic light information.
Alibaba told Bloomberg that the cars produced by Chinese automakers Xpeng Inc (NYSE:XPEV) and Zeekr Intelligent Technology Holding (NYSE:ZK) leveraged its Qwen model.
Over the next three years, Alibaba committed over 380 billion yuan ($52 billion) to AI infrastructure, such as data centers. It bagged a key deal to provide AI technology to Apple Inc’s (NASDAQ:AAPL) iPhones in China.
China is a key market for BMW, which is led by electric vehicle makers like BYD Co (OTC:BYDDY).
On Tuesday, BMW also launched its 360-degree full-chain AI strategy in China, focusing on digital production operations, comprehensive user experiences, and R&D innovation, YICAI reports.
Price Action: BABA stock is up 0.20% at $133.01 premarket at last check Wednesday.
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