Alibaba Unveils 397B-Parameter Qwen-3.5 AI Model with 1M-Token Window
Alibaba launched Qwen-3.5, a 397 billion-parameter AI model with a 1 million-token context window in its Plus edition, boosting its open-source lead over U.S. rivals. Meituan reported a ¥15.7 billion Q4 loss after intense instant-commerce price competition with Alibaba.
1. Qwen-3.5 Launch Details
Alibaba rolled out Qwen-3.5 featuring 397 billion parameters and open-source access, marking a major upgrade from earlier models. The closed Qwen-3.5-Plus version offers an industry-leading 1 million-token context window to support complex language tasks.
2. Competitive Impact on Instant Commerce
Meituan posted a ¥15.7 billion loss in Q4 2025, improving from ¥18.6 billion in Q3, as Alibaba’s aggressive pricing in instant commerce intensified sector competition. This underscores Alibaba’s growing market influence against rivals like Meituan and JD.com.
3. Open-Source Ecosystem and Partnerships
Qwen models have exceeded 700 million downloads on Hugging Face, reflecting rapid global adoption. Major tech firms such as Meta are integrating Qwen into their AI stacks, highlighting Alibaba’s expanding role in the open-source AI ecosystem.