Alibaba launches Qwen3.5 as competition heats up in the 'agentic AI' race

Summary

Alibaba has introduced Qwen3.5, its latest artificial intelligence model, as competition intensifies in the emerging “agentic AI” segment. The company says the model delivers improved performance and lower operating costs, underscoring its push to expand enterprise adoption and strengthen its position in China’s rapidly evolving AI market.

BEIJING, Feb. 16 — Alibaba has unveiled Qwen3.5, its latest artificial intelligence model, as competition intensifies in the emerging “agentic AI” segment — software designed to carry out complex tasks with minimal human input.

The Chinese technology giant said the new model delivers gains in performance and cost efficiency, adding that it outperforms several competing systems on selected benchmarks. The launch is part of Alibaba’s broader effort to expand adoption of its Qwen chatbot platform in China’s rapidly evolving AI market.

Focus on autonomous task execution

According to Alibaba, Qwen3.5 is designed to independently handle multi-step workflows — from interacting with applications to processing large volumes of data — through what the company describes as “visual agentic capabilities.” These features enable the model to operate across mobile and desktop environments with limited supervision.

Alibaba said the new version is about 60% cheaper to run than its predecessor, enabling developers and enterprises to deploy advanced AI tools more efficiently.

“Built for the agentic AI era, Qwen3.5 helps organizations move faster while maximizing capability per unit of compute,” the company said in a statement.

Intensifying competition in China’s AI market

The release comes as competition among Chinese AI developers accelerates. Rival offerings from ByteDance — particularly its Doubao chatbot — command large domestic user bases, while startup DeepSeek has drawn global attention with rapid model improvements.

ByteDance recently introduced upgrades to its chatbot platform, highlighting how major players are racing to build AI systems capable of acting as digital agents rather than purely conversational tools.

Alibaba has been working to increase engagement with Qwen through integrations with its e-commerce ecosystem. Earlier campaigns encouraging users to interact with the chatbot reportedly boosted activity, underscoring the company’s strategy of linking AI services with commerce.

Strategic implications for investors and developers

The launch signals Alibaba’s determination to remain a leading force in China’s domestic AI market and the broader global competition dominated by U.S. firms. By emphasizing lower operating costs and enterprise usability, the company appears to be prioritising scalable deployment alongside performance gains.

Industry observers are closely watching upcoming releases from Chinese competitors, which could further reshape the competitive landscape and influence investor sentiment toward AI infrastructure spending.

As the industry shifts toward more autonomous software agents, platforms that combine capability, cost efficiency, and ecosystem integration are likely to gain an edge — and Qwen3.5 represents Alibaba’s latest effort to secure that position.

Why this matters

Qwen3.5’s launch highlights how quickly the AI industry is moving toward more autonomous, task-oriented systems. For businesses, lower-cost and more capable models could accelerate adoption across workflows and enterprise software. For investors, the release underscores intensifying competition in China’s AI sector, where innovation speed and scalability are becoming key differentiators in the global race to build practical AI platforms.

FAQs

Q1. What is Qwen3.5 and why is it important?

Qwen3.5 is a new AI model designed to perform complex tasks autonomously, reflecting the industry’s shift toward systems that can take actions rather than just respond to prompts.

Q2. What does “agentic AI” mean?

Agentic AI refers to software that can plan and execute multi-step workflows, interact with applications, and operate with limited human supervision.

Q3. How does Qwen3.5 improve over previous versions?

According to Alibaba, it is more cost-efficient, handles larger workloads, and supports broader task automation across devices.

Q4. Who are the main competitors in China's AI market?

Major rivals include other large technology platforms and fast-growing AI startups building their own models and chatbot ecosystems.

Q5. Why is cost efficiency a key focus for new AI models?

Lower operating costs make it easier for businesses to deploy AI at scale as demand for computing resources grows.

Q6. How could this launch affect businesses and developers?

More capable and affordable models could accelerate adoption in areas such as automation, customer support, and data analysis.

Q7. What does this mean for the global AI race?

New releases from major players highlight ongoing rapid innovation and competition as companies work to deliver more practical and scalable AI systems.