Introduction to Alibaba’s Qwen Update
Alibaba is updating its artificial intelligence chatbot Qwen as it pushes to catch up with tools like OpenAI’s ChatGPT. The revised app replaces the older Tongyi version and became available on both major app stores on Friday, last week. In its app-store descriptions, Alibaba calls Qwen the “most powerful official AI assistant for its models” and the main way for users to try its newest Qwen model.
Expansion and Development
Alibaba has spent the past two years trying to expand the use of its Qwen models during the global rush toward AI tools. Along with newer Chinese players like DeepSeek and Moonshot AI, Alibaba has become one of the country’s bigger AI developers. It has also supported an open-source approach by making its models available for others to use and adapt. The company plans to add agent-style features that can help shoppers on platforms such as Taobao.
Revenue Growth
Alibaba has been trying to turn these models into steady revenue, and the push appears to be paying off. In the June quarter, sales from its AI products grew at triple-digit rates for the eighth quarter in a row. This significant growth indicates the potential of AI in driving business success.
Price Reductions
At the same time, Alibaba cut the cost of using Qwen3-Max, its largest model, by almost half. The trillion-parameter system launched in September with some of the highest prices on Alibaba Cloud. The company has now reduced its lowest API rates from US$0.861 to US$0.459 per million input tokens and from US$3.441 to US$1.836 per million output tokens. Users who run batch tasks during off-peak hours get another 50 per cent discount.
Competition in the AI Market
The model recently placed first in a cryptocurrency investment contest that compared top models from both the US and China. Its price drop comes amid sharper competition in China’s model market. Several start-ups — including Moonshot AI, Zhipu AI, and MiniMax — have released new systems in recent months and have promoted their performance and low costs. China has already seen several rounds of price cuts across the AI sector, with companies trying new ways to attract customers.
Global Recognition and Concerns
Alibaba’s fast progress in AI has also been noticed in the United States. Marketing specialist Tulsi Soni noted that Silicon Valley is witnessing a “full-blown Qwen panic.” However, Alibaba had to defend itself against claims reported by the Financial Times, alleging that the company provided China’s People’s Liberation Army with certain technical support, including access to customer data and AI services. Alibaba rejected these allegations, stating they were “completely false” and questioning the motives behind the leak.
Conclusion
Alibaba’s update of its Qwen chatbot and the expansion of its AI models signify the company’s commitment to advancing in the AI sector. With significant revenue growth and competitive pricing, Alibaba is poised to continue playing a major role in the global AI landscape. However, concerns about data privacy and security will need to be addressed to ensure the sustainable development of AI technologies.
FAQs
- What is Qwen? Qwen is Alibaba’s artificial intelligence chatbot, designed to provide powerful AI assistance and support various applications.
- What changes has Alibaba made to Qwen? Alibaba has updated Qwen, replacing the older Tongyi version, and reduced the cost of using its largest model, Qwen3-Max, by almost half.
- Why is Alibaba expanding its AI models? Alibaba aims to turn its AI models into steady revenue streams and stay competitive in the global AI market.
- What are the implications of Alibaba’s AI advancements? Alibaba’s progress in AI has global recognition, with potential implications for business, technology, and international relations, but also raises concerns about data privacy and security.
