Technology company Bosch has signed an expanded agreement with Alibaba Group for cloud computing and AI technologies.

The two companies will work together on cloud-based enterprise operations, AI business innovations, and expanding Bosch's e-commerce business.

According to the companies, the partnership will focus on "cloud migration and AI cooperation," covering multiple business areas including Bosch's corporate operations, home appliances, and commercial vehicles.

On the AI side, they will use Alibaba's AI capabilities to improve operational efficiency and for "product intelligence." In the automotive sector, this will see the companies explore running Bosch's intelligent driving environment on Alibaba Cloud's AI infrastructure - using Qwen-based models for smart cockpit experiences, and potentially develop automated driving solutions.

On the e-commerce side, Alibaba will help Bosch with its expanded product portfolio and offer consumer insights from the Alibaba e-commerce platform. Starting in China, Bosch will use Alibaba’s global e-commerce platforms, including Lazada, Miravia, and AliExpress, later expanding to Southeast Asia, Spain, and Latin America.

“Our partnership opens up exciting opportunities for both Bosch and Alibaba to expand our offerings in the global market,” said Dr. Tanja Rückert, member of the Bosch board of management and chief digital officer.

“By joining forces, we combine Alibaba’s advanced cloud infrastructure, AI capabilities, and e-commerce market reach with Bosch’s deep technological expertise in mobility, industrial technology, and consumer goods to drive greater efficiency and innovation worldwide. AI has been an innovation booster for Bosch across all business sectors, and cooperation with strong partners like Alibaba is essential for Bosch realizing its full potential and creating greater value.”

“This partnership with Bosch demonstrates our commitment to empowering global businesses with world-class technologies and highlights Alibaba’s strengths in AI and cloud computing,” said Joe Tsai, Chairman of Alibaba Group. “Bosch’s leading expertise in advanced automotive solutions and household appliances, combined with Alibaba’s innovations in cloud, AI, and e-commerce, will enable both our companies to bring compelling value propositions to customers worldwide.”

Bosch Group manufactures and markets automotive original equipment and aftermarket products, industrial drives and control technology, power tools, household appliances, security and communication systems, as well as thermotechnology solutions. The company was founded in Stuttgart, Germany, in 1886, and established a regional presence in China in 1909.

Alibaba has seen strong growth in its cloud business of late. In its recently published earnings report, the cloud unit saw a total revenue of $4.662 billion, up 26 percent Year-on-Year (YoY). Within that, Alibaba said that AI-related revenue "maintained triple-digit year-over-year growth" - a rate it has maintained now for eight consecutive quarters. In comparison, its whole-of-company revenue growth was two percent.