Jack Ma he returned like a prodigal son to the international scene in February of last year. He did so at an event with the president of China, Xi Jinping, and that represented an important support for the technological leader. Since then his company, Alibaba, has not stopped flooding us with its open AI models, Qwen, but that strategy is having the same lights and shadows as its competitors.
Devastates downloads. Alibaba launched its Qwen family of models in 2023 and released them with open weights almost immediately. That made them a perfect alternative to be able to use them locally and to also be able to tune them in all types of scenarios. In January 2026, Qwen was already the open AI model most downloaded in the world with close to a million daily downloads according to data from Hugging Face.
By the end of 2025, Qwen was already the most downloaded open weight model in the world by far. Source: AI Base.
But popularity does not equal income. In the first quarter of 2026, Alibaba indicated that it had obtained revenue of $1.3 billion related to AI, just 4% of its total revenue. The figure is very short, especially if we take into account that Alibaba plan to invest $55 billion in AI infrastructure by the end of 2027.
Investors want profits now. Company shares have fallen 37% on the Hong Kong stock market this year: investors are clearly concerned about the lack of return on this bet on AI, something that we have also been seeing for some time in the US market.
Internal divisions. The pressure to turn these open models into a business seems to be dividing Qwen’s own team. In March its chief engineer, Lin Junyang, announced his departure from the companyand he was followed by several key engineers amidst internal disagreements on how to monetize the model. The company has already started move token in the field of proprietary models: in April already released three of them in a few days.
War with the US and Anthropic. Meanwhile, the company also faces external pressures. The Pentagon has included it on a blacklist of companies that Washington says support the Chinese military, something Alibaba denies. Additionally, Anthropic recently sent a letter to US senators accusing Alibaba of try to copy their technology using 24,000 fraudulent accounts. Alibaba has declined to comment on the matter.
Alibaba has the same problem as OpenAI. Richard Lin, vice president of the company Datastrato, has been involved in the panorama of open AI models in China for some time, and his message reminds us of a palpable reality not only for that market, but for all startups and AI companies: “At the moment there are no AI companies with a sustainable business model. It is not a healthy industry.” The message is as true as it is forceful, but all AI companies would surely respond with what Zuckerberg said: “Losing a couple hundred billion dollars would be a bummer, but that’s better than being left behind in the race for superintelligence.”
The funny thing is that they are both (probably) right.
Image | qwen
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