BMW to team up with Chinese Alibaba to integrate AI into vehicles: Report

German carmaker giant BMW and Chinese tech firm Alibaba announced a strategic partnership in China to bring large-language-model (LLM) AI models to BMW's next-generation vehicles, according to Chinese state-run Xinhua News on Wednesday.

Under the agreement, the two companies will develop an engine that uses Alibaba's LLM AI model Qwen.

The AI engine will initially power BMW's in-car Intelligent Personal Assistant, debuting in its next-generation intelligent vehicles—its Neue Klasse models.

The new models are scheduled to be manufactured in China and are expected to be released in 2026.

"Our long-term partnership with Alibaba Group is exemplary of common growth achieved with co-creation. BMW will work closer with Chinese tech partners on electric mobility and intelligent technologies to write our renewed win-win story," said Sean Green, president and CEO of BMW Group Region China, Xinhua News reported.

"Our partnership with BMW Group marks a pivotal leap in deploying AI-powered LLMs at the forefront of advanced manufacturing, and Qwen's integration into BMW's in-car systems showcases how AI can revolutionize mobility," said Eddie Wu, CEO of Alibaba Group.

In China, regulators only approve the use of AI services developed by companies in mainland China.

Alibaba had previously reached an agreement with US technology company Apple in February to integrate AI services into iPhones sold in China.