Alibaba launches Qwen 3.5 AI model amid intensifying China chatbot race

Alibaba claims Qwen 3.5 delivers lower costs and higher processing capacity as China's AI rivalry intensifies.

Alibaba introduced its latest artificial intelligence (AI) model, Qwen 3.5, to boost its presence in China’s chatbot market.

The company stated that the new model can execute complex tasks independently, processes larger workloads more efficiently, and is less costly to deploy compared to previous versions.

According to Alibaba, Qwen 3.5 reduces usage costs by 60% and handles up to eight times the workload of its predecessor.

Free Sample

Download sample pages of selected reports

Explore a selection of report samples we have handpicked for you. Get a preview of the insights inside. Download your free copy today.

The Qwen 3.5 model is available in two forms: an open-weight version that allows users to download and run it on their own systems, and a hosted version accessed via Alibaba’s cloud platform Model Studio.

The company reported that both versions became available this week and highlighted the model’s ability to operate across mobile and desktop applications with what it describes as “visual agentic capabilities”.

Alibaba, in a statement, said: “Built for the agentic AI era, Qwen3.5 is designed to help developers and enterprises move faster and do more with the same compute, setting a new benchmark for capability per unit of inference cost.”

Alibaba’s launch comes amid growing competition in China’s AI sector, as firms race to release models capable of “agentic” behaviour, where AI systems independently perform tasks for users.

Benchmark data published by Alibaba indicates that Qwen 3.5 matches or surpasses leading models from US-based OpenAI, Anthropic, and Google DeepMind on select measures; however, these results are self-reported and have not been independently verified.

The new model features can support 201 languages and dialects, compared with 82 in the previous iteration.

Alibaba recently observed a seven-fold increase in active users of its Qwen chatbot after a promotional campaign offering discounts on food and beverage purchases through the app.

This growth follows an earlier release of Qwen 2.5-Max last year, which responded to DeepSeek’s growing influence in the sector.

Industry observers continue to monitor developments as DeepSeek prepares its next-generation model for imminent release.

Meanwhile, Alibaba anticipates further expansions within its AI offering during the Chinese New Year period.

Unlock up to 35% savings on GlobalData reports

Use the code at checkout in the report store

  • 20% OFF

    Buy 2 reports

    Use code:

    Bundle20

  • 25% OFF

    Buy 3 reports

    Use code:

    Bundle25

  • 30% OFF

    Buy 4 reports

    Use code:

    Bundle30

  • 35% OFF

    Buy 5+ reports

    Use code:

    Bundle35

Valid on all reports priced $995 and above. Cannot be combined with other offers.

Still deciding what will work best for your business?

Ask our experts for help.

Enquire before buying