Chinese tech giant Alibaba Group has announced on Thursday that it is further expanding its cooperation agreement with Guangzhou-based XPeng to jointly develop automotive security algorithms.
Alibaba is XPeng‘s largest institutional shareholder, holding 33.5 million shares as of the end of the second quarter. Its stake was valued at $713.3 million.
The two parties aim to provide users with safer and more reliable services, including post-quantum security tech through its Alibaba Cloud service.
They plan to apply post-quantum encryption to areas such as AI, V2X, chips, robotics, and flying cars.
The announcement was made at the Apsara Conference, which is focused on cutting-edge technologies, including AI and embodied intelligence.
At the opening ceremony, Alibaba unveiled a major upgrade to Alibaba Cloud’s full-stack AI system — spanning from large language models (LLM) to AI infrastructure, reinforcing the company’s goal of becoming a leading full-stack AI service provider.
XPeng and Alibaba started collaborating back in 2022, when they announced the opening of a computer center to train software for driverless vehicles.
The automaker uses technology from Alibaba’s cloud division for its computing needs.
The two companies have already started using post-quantum security in the newly launched XPeng P7 model.
The company launched and started deliveries of the new sedan in China in late August. The vehicle is priced from 219,800 yuan ($30,800).
On Thursday, the company announced on Weibo that the 10,000th new P7 had rolled off the production line, just one month after its launch, with its delivery expected in a few days.
The model also debuted in Europe earlier this month, at the IAA Auto Show in Munich.
The company did not reveal a concrete timeline for its launch on the continent. In Switzerland, for instance, the model will be available in early 2026.
XPeng also announced on Wednesday that it has raised nearly $100 million through asset-backed securities (ABS) related to its car leasing business.
The project is based on the credit quality of XPeng Leasing’s assets, which include the vehicles and the payments expected from customers in related leasing contracts.
This allows XPeng to grow its electric vehicle leasing business and raise cash without taking on additional debt or increasing its reported liabilities.
