Alibaba forms AI technology partnership with BMW
The Chinese-German partnership aims to develop AI technology to support the development of the next generation of vehicles in China.
Alibaba and BMW have announced a technological partnership to compete in an increasingly intensive global race to harness the power of AI. Recently, Alibaba has demonstrated an increased focus on AI, whereas BMW hopes to create products to help it break into the lucrative Chinese market.
Early plans for AI involve developing the technology for use in cars, with Alibaba aiming to monetize its products and increase its customer base. According to a statement from the Alibaba Group’s newsroom:
“Under the partnership, the new BMW Intelligent Personal Assistant (IPA) will integrate a bespoke AI engine co-developed by BMW and Alibaba. 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. The AI-enhanced IPA will debut in BMW Neue Klasse models produced in China starting from 2026, setting a new benchmark for intelligent, intuitive, and engaging human-vehicle interaction.”
Industry observers anticipate this collaboration will represent a defining moment for AI-powered mobility in the Chinese market. The features of these new vehicles will aim to provide additional in-car mobility, including navigation, assistance, and voice-activated controls.
The first generation of the Neue Klasse model will include two AI agents, which the company has named Car Genius and Travel Companion. Drivers will be able to customize these services and receive real-time aid in matters like GPS, real-time traffic data, and personal scheduling.
The BMW Group has been making a concerted effort to carve out a share of the growing global electric vehicle market. It’s already in the process of converting many of its well-known models to fully electric in the years ahead, with many of its products from Rolls-Royce and other subsidiaries expected to become fully electric by the 2030s.
Despite the progress made, European EV makers have struggled to compete with their Chinese competitors, including BYD, Geely, and SAIC. With government subsidies in Europe decreasing, BMW’s move to harness AI technology in China could enable it to gain an advantage over the competition and position it as the leading Western EV maker into the 2030s.
