In recent weeks, Alibaba Cloud has made significant strides in the artificial intelligence (AI) sector, unveiling a range of new models and tools aimed at enhancing global digital transformation. Meanwhile, the company’s Quark AI app has surpassed ByteDance’s Doubao, becoming China’s top AI application with nearly 150 million monthly active users. These developments come amidst broader shifts in the AI and data infrastructure landscape, with companies like Microsoft and Meta adjusting their strategies in response to the growing demand for AI capabilities.
Alibaba Cloud’s Expansion in AI Infrastructure
Alibaba Cloud has recently announced a series of enhancements to its AI offerings, targeting international customers with new models and infrastructure upgrades. At the Spring Launch 2025 online event, the company introduced its latest proprietary large language model (LLM) series, Qwen, which includes advanced models like Qwen-Max, QwQ-Plus, QVQ-Max, and Qwen2.5-Omni-7b. These models are available through Alibaba Cloud’s availability zones in Singapore, emphasizing the company’s commitment to global expansion in AI technology (RCR Wireless News).
The upgrades are part of Alibaba’s broader strategy to meet the growing demand for digital transformation worldwide. Selina Yuan, President of International Business at Alibaba Cloud, highlighted the importance of these updates in enabling businesses to scale and innovate in an AI-driven world (Computer Weekly). The company’s Platform for AI (PAI) has also seen significant enhancements, with the PAI-Elastic Algorithm Service (EAS) now supporting distributed inference capabilities to handle super-large models more efficiently.
Additionally, Alibaba Cloud has integrated its AI inference capabilities into its PolarDB database, aiming to streamline data management and enhance efficiency for AI-driven workloads. This move is expected to benefit industries such as e-commerce, where Alibaba has a strong presence, by enabling more effective text-centric applications (Computer Weekly).
Alibaba’s AI Applications Across Industries
Beyond infrastructure, Alibaba Cloud’s AI models are making a significant impact across various industries in China. At the AI Dynamics Conference in Beijing, the company revealed that its LLM, Qwen, has become one of the most widely adopted AI models by Chinese enterprises. Major internet companies, banks, and automotive brands are leveraging Qwen and other Tongyi family models to enhance productivity and customer experiences (Alizila).
In the consumer electronics sector, leading AR brand RayNeo has integrated Qwen into its smart glasses, providing users with an AI-powered voice assistant for context-aware interactions. In retail, e-commerce platform Dingdong has utilized Qwen through Alibaba Cloud’s Model Studio to develop an AI assistant that handles various customer service tasks, significantly reducing model inference costs (Alizila).
The automotive industry is also benefiting from Alibaba’s AI technology. Smart EV maker NIO is using Qwen to enhance its in-car AI assistant, NOMI, while Horizon Robotics collaborates with Alibaba Cloud to optimize training for autonomous driving models. In healthcare, Microcraft is using Qwen to improve communication and diagnostic accuracy through real-time health monitoring and report generation (Alizila).
Quark AI’s Rise in Popularity
Alibaba’s Quark AI has emerged as the top AI app in China, surpassing ByteDance’s Doubao with nearly 150 million monthly active users worldwide. This achievement positions Quark ahead of other notable AI apps like DeepSeek, which has around 77 million users. Quark’s success is attributed to its availability on both mobile and desktop platforms, offering users a versatile AI experience (South China Morning Post).
Globally, Quark ranks sixth among AI apps by monthly active users, according to a report by Andreessen Horowitz. This global recognition underscores Alibaba’s growing influence in the AI app market, challenging established players like OpenAI’s ChatGPT and Microsoft’s AI-enhanced Edge browser (South China Morning Post).
Industry and Market Responses
While Alibaba is expanding its AI capabilities, other tech giants are adjusting their strategies. Microsoft has announced it is “slowing or pausing” some of its data center projects, including a $1 billion project in Ohio, as it refines its approach to meet the explosive demand for AI services (RCR Wireless News). This move reflects a broader trend of companies reassessing their investments in AI infrastructure to ensure agility and efficiency.
In contrast, Meta is doubling down on AI infrastructure, announcing an $800 million investment in a second AI-optimized data center in Ohio. This development highlights Meta’s commitment to expanding its AI capabilities, even as other companies scale back (RCR Wireless News).
Alibaba’s Strategic Moves and Market Position
Alibaba’s strategic initiatives extend beyond AI infrastructure and applications. The company has recently disclosed $80,000 in lobbying efforts focused on technology policy issues, access to U.S. capital markets, and e-commerce-related matters. These lobbying efforts underscore Alibaba’s commitment to navigating the complex regulatory landscape and maintaining its competitive edge in the global market (Nasdaq).
Furthermore, Alibaba’s stock has seen gains amidst fluctuations in the Chinese market, reflecting investor confidence in the company’s growth potential. Despite ongoing trade tensions between the U.S. and China, Alibaba, along with other tech giants like Tencent and Baidu, has experienced positive market responses, indicating a focus on long-term growth opportunities (Barron’s).
In the supply chain sector, Alibaba is also making strides to support small and midsize businesses (SMBs). Yikun Shao, head of B2B North American supply chain at Alibaba, emphasized the importance of supply chain diversification for SMBs to mitigate risks. Alibaba is offering tools like duty calculators and expanded supplier networks to help these businesses navigate the complexities of global trade (Supply Chain Management Review).
Alibaba’s comprehensive approach to AI, from infrastructure to real-world applications, positions the company as a leader in the rapidly evolving tech landscape. The company’s focus on enhancing global digital transformation, coupled with its strategic investments and market positioning, highlights its commitment to driving innovation and growth in the AI sector.
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