Alibaba Group Holding Ltd Unveils Qwen3.5 AI Model

Faizan Farooque

Mon, February 16, 2026 at 9:29 PM GMT+9 1 min read

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This article first appeared on GuruFocus.

Alibaba Group Holding Ltd (BABA, Financials) introduced Qwen3.5, a new artificial intelligence model designed to independently execute complex tasks, as the Chinese technology company seeks to expand its presence in the next phase of AI development.

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Qwen3.5, created for the agentic AI era, can execute visual agentic actions across mobile and desktop apps, according to the Beijing-based business. The business said the device is 60% cheaper and runs huge workloads eight times faster than its predecessor.

Alibaba said Qwen3.5 outperformed its predecessor and other U.S. models like GPT-5.2, Claude Opus 4.5, and Gemini 3 Pro in benchmark testing.

China’s AI sector is becoming more competitive. Doubao 2.0, ByteDance’s chatbot platform with approximately 200 million Chinese users, was released recently. DeepSeek, which made waves last year with its low-cost model, is scheduled to release a new version soon.

Alibaba promoted Qwen chatbot usage through ecosystem integration. Despite technical issues, a discount campaign promoting chatbot purchases increased active users this month. The business released Qwen 2.5-Max versus competing models last year, one of the first big rivals to respond to DeepSeek’s ascent.

Alibaba’s Qwen3.5 launch shows its commitment to cost effectiveness and functionality as corporations and developers seek scaled AI solutions. As the business competes in a crowded AI sector, investors will likely focus on user growth and monetization patterns in earnings reporting.

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