In a move signaling the next phase of artificial intelligence evolution, Alibaba has formed a dedicated robotics and embodied AI team. This marks a strategic pivot beyond virtual models toward AI agents that can act in the physical world.
New Robotics & Embodied AI Team
Lin Junyang, technical lead for Alibaba’s foundational model “Qwen,” announced on social media that Alibaba has created a “Robotics and Embodied AI Group.” The existing Qwen team, which builds multimodal models (handling voice, images, and text), will contribute to this effort. The vision is to evolve from virtual intelligence to embodied agents capable of long-term reasoning.
Strategic Investment: X Square Robot
Alibaba is already making concrete moves in the robotics space. In September, Alibaba Cloud led a USD 140 million funding round in Chinese robotics startup X Square Robot, marking its initial push into embodied intelligence.
AI Investment Outlook & Alibaba’s Ambitions
At the 2025 Yunqi Conference, Alibaba CEO Wu Yongming projected that global AI investment could surge to USD 4 trillion over the next five years, and Alibaba must keep pace. Previously, Alibaba revealed plans to invest RMB 380 billion over three years into cloud infrastructure and AI hardware; the firm now intends to further expand its investment.
Implications & Outlook
Alibaba’s move underscores a broader industry trend: transitioning AI from purely software to embodied agents. Success here could reshape automation, robotics, and intelligent systems across sectors. For Alibaba, this step not only reinforces its AI leadership but also positions it in domains where physical interaction and real-world reasoning matter.
