Alibaba is making its third major strategic push this year. In the tech industry's AI race, the company has previously resembled U.S. giants like Amazon and Microsoft—lacking mass-market traffic portals like WeChat or Douyin, focusing instead on enterprise clients through cloud computing and AI infrastructure investments.
For years, Alibaba's AI progress centered on foundational layers—investing in top Chinese AI startups, developing its open-source Qwen model series (which outperforms rivals in benchmarks), and expanding Alibaba Cloud. But the November 17 public beta launch of its AI assistant "Qwen app" signals broader ambitions.
The upgraded Qwen app, merging Alibaba’s Tongyi app and Quark AI assistant, now integrates the latest Qwen3-Max model and directly challenges ChatGPT’s 5.1 version. This marks Alibaba’s third major 2025 initiative after AI infrastructure and Taobao’s flash sales, led by Alibaba’s Intelligent Information Group president Wu Jia. Since September, over 100 engineers have been working in secrecy at Alibaba’s Xixi campus—mirroring the pre-launch intensity of Amap’s "Street Sweep" project.
The current version is preliminary, with significant updates planned. Beyond chat, Qwen’s team is collaborating with Taobao, Amap, Flash Sales, and Alipay to embed AI deeper into user workflows—like personalized shopping recommendations or automated grocery prep for recipes.
An insider noted, "Alibaba has strong model capabilities but needs a dominant C-end entry point. Qwen will be that AI-native super-app." Unlike Amazon or Microsoft, which integrate third-party AIs like ChatGPT or Gemini, Chinese tech giants must control their own traffic funnels—evident in Pinduoduo’s short-video push or Alibaba’s food-delivery battles. Chatbots now represent the clearest AI gateway.
**Why Qwen Now?** The team cites two factors: 1. Qwen3-Max’s performance now ranks globally competitive. 2. Ecosystem readiness—both external and internal Alibaba services can now be seamlessly leveraged by the model.
**Timing and Competition** Despite rivals’ six-month head starts, Alibaba sees opportunity: - No Chinese AI app has sustainably surpassed 100M DAU. - Current offerings remain rudimentary in problem-solving. Wu Jia previously predicted a billion-DAU Chinese AI app by early 2026.
**Qwen vs. ChatGPT** Key differentiators: - Free, accessible design (no monetization plans). - Deeper integration with Alibaba’s ecosystem (e.g., Taobao price comparisons, Amap trip planning). The challenge lies in orchestrating disparate services—like bundling Fliggy (travel), payments, and shopping for team-building plans.
**Development & Strategy** Planning accelerated in mid-2025, with CEO Eddie Wu approving full-scale investment. Post-September, engineers from Beijing and Guangdong joined the Xixi campus effort. Qwen is now Alibaba’s top strategic project after Amap’s Street Sweep, involving Alibaba Cloud, Tongyi Lab, Taobao, and others.
**Consumer AI Roadmap** Alibaba’s dual approach: 1. Qwen as the flagship AI-native app. 2. AI upgrades for existing products like Quark (search/browser), Taobao, and Amap. Quark’s DAU reportedly reaches 50-60M (external data undercounts it), but Qwen will take center stage as the conversational AI future unfolds.
The company’s recent reorganization—pooling resources across divisions, as seen in Flash Sales’ success—will drive Qwen’s rollout.
*(Adapted from original reporting)*