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The Hindu·4 min read·hard

Alibaba plans to charge big users of its next open-source AI model, sources say

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Reuters
Alibaba plans to charge big users of its next open-source AI model, sources say
✦AI Summary

Alibaba is reportedly planning to implement a revenue-sharing model for high-earning users of its Qwen open-source AI models. This move signals a shift in the Chinese AI industry toward monetizing open-source technology to compete with U.S. firms.

Why it matters

The monetization of open-source AI models marks a significant shift in business strategy for Chinese tech giants, potentially reshaping the global AI development landscape.

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Chinese technology giant Alibaba plans to ask major users of the next version of ‌its Qwen open-source AI model for a share of revenue they make from the hotly anticipated offering, ​according to two people familiar with the company’s plans.

Like last month’s blockbuster model release from Chinese ⁠AI startup Moonshot, Alibaba’s Qwen3.8-Max model is an open-source, open-weight model, meaning that the underlying learned settings that allow developers to run or adapt the system are available for download.

By contrast, U.S. developers OpenAI, Anthropic and Alphabet’s Google have closed-source models.

Open source is often thought ‌of as free, but tucked into the licensing terms of Moonshot’s Kimi K3 was a provision that requires anyone offering the model for sale as a service and generating more than $20 million in annual ‌sales to work out a commercial agreement with Moonshot.

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