JAKARTA - Alibaba Group announced its strategic partnership with and SAP, to accelerate innovation of entertainment and digital transformation through the use of advanced cloud computing technology (cloud) and artificial intelligence (AI).

As part of this partnership, Alibaba Cloud will join the latest SAP Infrastructure as a Service (IaS) certification program, in order to provide full support for customers running cloud enter solutions from SAP.

"Our collaboration with SAP strengthens our commitment to empowering businesses around the world with world-class technology," said Joe Tsai, Chairman of Alibaba Group in a statement on Monday, June 16.

Not only that, Alibaba Group will also adopt Private SAP Cloud ERP to strengthen its internal entertainment infrastructure as part of this collaboration.

In the early stages, the partnership will focus on the Chinese market, with plans to expand into Southeast Asia, the Middle East, and Africa. The goal is to allow enterprises to implement SAP Integrated Business Planning (IBP) and start their transformation journey through the RISE with SAP and GROW with SAP programs.

"By combining physics software from SAP and tough infrastructure as well as Alibaba Cloud's AI capabilities, we help customers build smarter and more agile operations," added Joe Tsai.

This partnership also marks an important step in AI integration for enterprise needs. SAP is exploring Alibaba's Large Language Model (LLM) integration, Qwen, into the SAP Generative AI Hub on the SAP AI Core for the Chinese market.

This initiative will allow enterprise users to access the generalized AI capabilities that have been localized, directly within the SAP application and their custom AI applications. SAP is also exploring the implementation of the SAP AI Foundation over Alibaba Cloud infrastructure to provide tough and scalable AI tools for customers operating in China.

"Together with Alibaba, we are ready to help our customers drive innovation, improve operational performance, and create new competitive advantages. We look forward to this collaboration to shaping the future of cloud-based digital transformation," concluded Christian Klein, CEO of SAP SE.


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