From 2026 – that is, as early as next year – BMW will equip its cars with artificial intelligence from the trading platform Alibaba. Initially, only in China.
BMW will integrate Alibaba's artificial intelligence 'Qwen AI' into the Neue Klasse series from 2026. The partnership will deliver an AI-enhanced driving experience to Chinese customers and strengthen BMW against local rivals.
BMW is entering into a new partnership with Chinese e-commerce giant Alibaba. The goal is to integrate advanced artificial intelligence (AI) into upcoming car models for the Chinese market.
The first cars with the new technology will be the upcoming Neue Klasse series. It is expected to be introduced in China in 2026. The integration will be done via Alibaba's language model Qwen.
The Chinese market is hugely important for automakers. Sales of electric cars exceed one million units per month. This requires special attention from global brands like BMW.
This is reported by Bloomberg .
Competition in the Chinese car market has intensified significantly. Local Chinese technology companies such as Huawei and Xiaomi have entered the automotive industry, putting pressure on established car manufacturers.
At the same time, local car brands such as BYD and Xpeng are storming forward. They have quickly taken the lead in AI integration in cars.
This forces traditional manufacturers to find new technology partners to remain relevant.
Alibaba is best known for its online commerce platform, but the company is also investing heavily in other areas, including AI.
Alibaba has earmarked over 350 billion Danish kroner for the development of its AI platform Qwen over the next three years.
AI to strengthen BMW against China's own car brands
BMW will have access to two specific AI agents developed by Alibaba, called Car Genius and Travel Companion. The technology is based on Alibaba's Qwen model via subsidiary Banma's Yan AI.
The new AI agents will be integrated into BMW's existing Intelligent Personal Assistant (IPA). This will create a more advanced "smart cockpit" solution. The solution will enable more human-like conversations with the car.
The system can handle complex commands. It can also integrate seamlessly with other digital ecosystems. The aim is to offer an intuitive and AI-enhanced driving experience. It will be tailored specifically for Chinese car buyers.
Car Genius will offer real-time assistance related to car functions. Travel Companion focuses on lifestyle services and intelligent trip planning. It can suggest restaurants based on user preferences, live traffic data and parking information.
BMW says it will set a new standard for user-centric mobility. The partnership with Alibaba is seen as a strategic move to keep pace with fast-paced local competitors.
The future is software in cars
For BMW, action is needed. Sales of the BMW and MINI brands in China fell by 13.4 percent in 2024. The forecasts for this year do not look promising either.
By investing in localized AI integration, BMW hopes to strengthen the brand's appeal and also close the gap with rapidly growing Chinese automakers.
Alibaba's Qwen AI is already used in cars from Chinese brands like Zeekr and Leapmotor, but the partnership with BMW gives the platform a significant boost by adding a globally recognized brand.
The entire automotive industry, especially in China, is experiencing a major shift. Software has become the decisive factor for the competitiveness of electric cars. BMW's collaboration with Alibaba is a direct response to this market dynamic.
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