Is AI still free? Alibaba’s new fee plan changes everything
HANGZHOU — Chinese technology giant Alibaba is preparing to shake up the artificial intelligence market by introducing a revenue-sharing model for major users of its upcoming open-source AI model. According to sources familiar with the matter, the company plans to ask high-volume commercial users of its next Qwen iteration for a portion of the revenue generated from the technology.
The move marks a significant shift for Alibaba, which has historically allowed its open-source offerings to be utilized in private data centers without payment. While the company currently charges developers who host models on Alibaba’s own cloud platform, this new strategy targets the broader commercial application of its software. The new licensing measures are expected to be implemented as early as next week.
Alibaba appears to be following a precedent recently set by Chinese startup Moonshot. The licensing terms for Moonshot’s Kimi K3 model include a provision requiring any entity generating more than $20 million in annual sales from the model to enter a commercial agreement. Reports suggest these agreements can involve a revenue share of up to 30 percent, though Alibaba’s specific rate remains under discussion.
Industry experts describe this approach as a classic ‘freemium’ model, common in Silicon Valley. By offering software at low or zero cost initially, firms can capture market share before charging for heavy commercial use and specialized optimization services. This strategy allows Chinese AI labs to compete directly with U.S. giants like OpenAI and Google, whose models remain strictly closed-source.
The shift toward paid open-source models highlights the growing commercial maturity of the AI sector. As these models reach performance levels comparable to their American rivals, developers are seeking sustainable monetization paths. This transition is expected to impact global IT service providers and cloud computing firms that rely on high-performance, cost-effective Chinese AI architecture to power their own consumer-facing applications.
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