Alibaba Debuts Qwen 3.5 AI Model with Faster Processing and Lower Cost

Alibaba has introduced a new version of its artificial intelligence platform, Qwen 3.5, aiming to boost the capabilities of its chatbot app and expand its user base. The model, which now supports advanced visual and task execution functions, is positioned to strengthen Alibaba’s competitiveness in China’s rapidly evolving AI sector.

According to Alibaba, Qwen 3.5 incorporates significant performance enhancements, claiming to outperform leading U.S. models in certain benchmarks while reducing operational costs by 60% compared to the previous version.

The upgraded AI model can process text, images, and videos—including analyzing footage up to two hours in length. Additional features enable the AI to execute tasks autonomously across both mobile and desktop applications, leveraging what the company refers to as visual agentic capabilities.

The launch arrives as Alibaba pursues higher adoption rates for its Qwen chatbot in China, where the market remains dominated by ByteDance’s Doubao and DeepSeek—an AI firm that achieved notable international traction last year. The timing coincides with a major holiday period, traditionally a key moment for boosting engagement in Chinese consumer tech apps.

Alibaba reported that Qwen 3.5 manages large workloads with eight times greater efficiency than its immediate predecessor. The company has intensified its commitment to AI development, with CEO Eddie Wu pledging over $53 billion towards related infrastructure, noting that actual investments may exceed this amount in the future.

Recent product updates have contributed to a notable rise in Qwen’s active user numbers. A promotional campaign earlier this month spurred a seven-time increase in engagement, as consumers used the Qwen app for food and beverage purchases—despite encountering some technical difficulties.

The Qwen app continues to broaden its functionality, now offering services that allow users to order food and arrange travel, seamlessly integrating with other services in Alibaba’s extensive e-commerce network.