Alpha magnetic spectrometer (AMS) is the first large magnetic spectrometer in space. Its precursor flight was completed successfully in June 1998. The key part of AMS is the permanent magnet system, which was built by the Institute of Electric Engineering, the Institute of High Energy Physics and the Chinese Academy of Launch Vehicle Technology. This system includes a permanent magnet made of high grade NdFeB and a support structure. The unique design of the permanent magnet based on the magic ring fulfills the severe requirements on the magnetic field leakage and the dipole moment for space experiments. The permanent magnet weighs about 2 tons, and provides a geometric acceptance of 0.6 m2 ·sr and an analyzing power BL2 of 0.135 T·m2. It works up to 40℃ without demagnetization. The main structure is a thin double shell, which undergoes the strong magnetic force and torque of the permanent magnet, as well as the large load during launching and landing. The permanent magnet system fulfills the requirements from AMS, and satisfies the strict safety standards of NASA.