Alibaba unveils Qwen3.5 as China’s chatbot race shifts to AI agents

Alibaba Group has released its newest series of AI models, Qwen3.5, amid increasing competition within China’s artificial intelligence sector. The launch, occurring on the eve of the Chinese New Year, follows the release of a robotics-focused AI model just one week prior.

Expanding AI Capabilities

The Qwen3.5 model is available in two versions: an open-weight version for users to download and customize, and a hosted version accessible through Alibaba’s cloud platform, Model Studio. Both versions demonstrate improvements in performance and cost, according to Alibaba.

Multimodal and Agentic Features

Qwen3.5 is designed with “native multimodal capabilities,” meaning it can process text, images, and video simultaneously. The model also supports new coding and “agentic” capabilities, aligning with a major trend in AI development. AI agents are systems capable of independently completing tasks with minimal user supervision.

Did You Know? The Qwen3.5 open-weight model utilizes 397 billion parameters, which are variables that influence how an AI system learns and reasons.

The rise of AI agents has gained attention following releases from American companies like Anthropic, with some market observers suggesting these agents could potentially disrupt software as a service companies. Competitors to Alibaba, including ByteDance and Zhipu AI, have also recently released upgraded models with enhanced agent capabilities.

Performance and Language Support

Alibaba reports that Qwen3.5’s performance is comparable to leading models from OpenAI, Anthropic, and Google DeepMind, based on the company’s own benchmark tests. However, CNBC has not independently verified these claims. The new models support 201 languages and dialects, a significant increase from the previous generation’s 82.

Expert Insight: The simultaneous release of open-weight and hosted models reflects a common strategy in the AI space, allowing for both broad accessibility and controlled commercial deployment. This dual approach enables Alibaba to cater to a wider range of users and applications.

Lin Junyang, technical lead of Alibaba Cloud’s Qwen team, indicated that further open-weight models are expected to be released during the Chinese New Year period. Developments in the US, such as OpenAI’s acquisition of the creator of OpenClaw, suggest continued rapid innovation in the field.

Frequently Asked Questions

What are AI agents?

AI agents are systems that can independently take actions and complete multi-step tasks on a user’s behalf with minimal supervision.

What is the difference between the open-weight and hosted versions of Qwen3.5?

The open-weight version allows users to download, run, fine-tune, and deploy the model on their own infrastructure, while the hosted version runs on Alibaba’s servers.

How does Qwen3.5 compare to other AI models?

Alibaba reports that Qwen3.5’s performance is on par with leading models from OpenAI, Anthropic and Google DeepMind, though these comparisons are based on self-reported benchmark tests and have not been independently verified by CNBC.

As AI development accelerates globally, how might the increasing capabilities of these models reshape the future of work and technology?