Magalu Cloud Partners with Alibaba for Corporate AI

Magalu Cloud, the public cloud platform of Brazilian retailer Magazine Luiza, has entered a partnership with Alibaba Cloud to provide generative artificial intelligence services to the domestic corporate market. The agreement combines Magalu Cloud's infrastructure ecosystem with Alibaba Cloud's portfolio of AI models, focusing on the Qwen family, to jointly serve business clients.

Founded in 2020, Magalu Cloud already manages roughly 80% of Magazine Luiza's own operational workloads and serves more than 2,000 external clients across startups and large corporations. Revenue from external customers has grown more than tenfold since the start of 2025, according to André Fatala, vice president of platforms, Luizalabs, and Magalu Cloud. Backed by commercial traction and sovereign AI tools, the unit plans to quadruple its size in 2026.

The agreement follows Alibaba Cloud's August announcement of its first cloud region in Brazil, which features two availability zones and represents its second in Latin America after Mexico. Alibaba Cloud holds 106 availability zones across 31 regions worldwide and plans $53 billion in global cloud and AI infrastructure investments.

Magalu Cloud currently operates across five data centers, including three in Greater São Paulo and two in Fortaleza. In May, Brazil's development bank BNDES approved 300 million reais ($54 million) in financing through the BNDES Mais Inovação line to fund research and development in São Carlos, São Paulo, and expand infrastructure by contracting a sixth data center in Fortaleza.