What: Alibaba Cloud expands its AI capabilities with enhanced language models and a comprehensive platform for training and deployment, positioning itself as a major competitor in the global AI landscape.

Why it is important: This strategic move challenges Western AI dominance while democratising access to sophisticated AI tools, particularly beneficial for retailers seeking to expand their global presence through multilingual capabilities.

Alibaba Cloud's latest AI developments mark a significant evolution in the retail technology landscape. The cloud division has introduced several large language models, including Tongyi Qianwen and Tongyi Wanxiang, alongside the ModelScope platform, creating a comprehensive ecosystem for AI development and deployment. The Qwen model, initially released in April 2023, has evolved to support 29 languages and now features versions ranging from 0.5 to 72 billion parameters, making it more energy-efficient while maintaining high performance.

The latest iteration, Qwen2.5-72B, outperforms prominent open-source models in benchmarks and demonstrates enhanced capabilities in coding and mathematical problem-solving. Since its launch, Qwen models have achieved over 40 million downloads and spawned more than 74,000 derivative models. The proprietary Qwen-Max model has shown particular strength, surpassing GPT4-o in eight benchmarks. Complementing these developments, the ModelScope platform provides a user-friendly interface for accessing and implementing these AI tools, making advanced technology accessible to businesses regardless of their technical expertise.

IADS Notes: Alibaba Cloud's latest AI developments align with significant industry trends observed in late 2024, when the company launched its "Partner Rainforest Plan" to democratise AI in retail during a period that saw retail AI adoption in China reach 230 million users . Earlier that year, in May, the company's partnership with LVMH demonstrated practical applications of the Qwen model in luxury retail , coinciding with broader industry momentum as nearly half of retailers reported increased revenue from AI initiatives . These developments collectively validate Alibaba's strategic focus on developing sophisticated AI models for global retail applications.

How Alibaba Cloud is transforming to keep pace with generative AI