Alibaba Launches Qwen-3.5 AI Model, Intensifying US-China AI Rivalry
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 17 2026
0mins
Source: Benzinga
- AI Model Launch: Alibaba launched its latest AI model, Qwen-3.5, on Monday, showcasing significant advancements despite having fewer parameters than its predecessor, Qwen-3-Max-Thinking, thereby intensifying the rivalry between the US and China in the AI sector.
- Open Source Advantage: The closed-source version, Qwen-3.5-Plus, features a context window of 1 million tokens, marking it as one of the largest in the industry, highlighting Alibaba's strategic focus on open-source AI to accelerate development and reduce costs for developers.
- Surging Download Metrics: The Qwen models have surpassed 700 million downloads on Hugging Face, becoming the most widely adopted open-source AI system, reflecting Alibaba's open strategy aligned with its 2025 AI vision that emphasizes openness and collaboration to foster innovation.
- Optimistic Market Outlook: Analysts noted that Qwen-3.5's performance has exceeded expectations, matching leading models from major US companies, and Alibaba's cloud business is well-positioned for sustained growth amid strong AI demand, prompting analysts to upgrade their outlook on the company.
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Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise
15 Analyst Rating
15 Buy
0 Hold
0 Sell
Strong Buy
Current: 125.950
Low
180.00
Averages
203.09
High
230.00
Current: 125.950
Low
180.00
Averages
203.09
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through four segments. The Alibaba China E-commerce Group segment is mainly engaged in E-commerce business, including operating Tmall Supermarket and Tmall Global, providing customer management services, product sales, as well as logistics services. It also operates quick commerce business such as Taobao Instant Commerce and Ele.me, as well as the China commerce wholesale business through 1688.com. The Alibaba International Digital Commerce Group segment is mainly engaged in international commerce retail and wholesale business, operating platforms such as AliExpress, Trendyol, Lazada and Alibaba.com. The Cloud Intelligence Group segment mainly provides public and non-public cloud services. The Other segments primarily include the operations of Freshippo, Cainiao, Alibaba Health and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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