Alibaba and Nvidia are expanding their partnership to enhance artificial intelligence capabilities, focusing on cloud computing and data processing. This collaboration aims to leverage Nvidia's advanced AI technologies within Alibaba's cloud services, potentially transforming various sectors in China and beyond.

Alibaba Cloud has developed a new pooling system called Aegaeon that significantly reduces the number of Nvidia GPUs needed for serving large language models, achieving an 82% reduction during beta testing. This innovative system allows for better GPU utilization by virtualizing access at the token level, enabling multiple models to be served simultaneously and increasing output efficiency. The findings suggest potential advancements for cloud providers in managing GPU resources, particularly in constrained markets like China.