CICC has released a research report indicating that Alibaba Group Holding Ltd (BABA-W) officially launched its next-generation flagship model, Qwen3.8-Max, on August 3, alongside the public beta launch of its enterprise-level agent product, Qianwen Office. This development comes a week after major overseas hyperscale cloud providers reported strong second-quarter earnings, triggering a notable shift in the valuation logic for the cloud sector.

The report notes that the simultaneous release of Qwen3.8-Max and Qianwen Office positions the company's model capabilities back into China's top tier, with a strategic push into enterprise-level AI office solutions. The Qwen3.8-Max model expands its parameter scale to 2.4 trillion, with 95 billion activated parameters, utilizing a sparse MoE architecture and a hybrid attention mechanism. Its performance improvements are concentrated in programming, office tasks, scientific research, and long-range tasks, achieving results comparable to the US top-tier model Fable5 in official benchmark evaluations.

Next week, both Qwen3.8-Max and Qwen3.8-27B will have their weights open-sourced, marking the first open-source release in the Max series. This move is expected to drive an increase in model call volume, while the company's full-stack AI capabilities, which include both cloud and chip technologies, position it well to capture deployment demand from the open-source ecosystem. CICC highlights that Alibaba Cloud is the only cloud provider in China with a combination of economies of scale, self-developed chips, and a top-tier proprietary model. As a result, its near- to medium-term performance is likely to exceed market expectations.

As the largest domestic cloud provider, Alibaba Cloud has already achieved economies of scale in computing power. Furthermore, as the only full-stack AI provider in China, it possesses self-developed chips from its T-Head semiconductor unit and the leading Qwen model. The joint optimization of chips, inference platforms, and models has effectively improved inference efficiency. CICC holds a positive outlook on the trend of accelerating revenue growth and margin improvement for Alibaba Cloud.