Alibaba Slashes AI Model Costs by 85% in Competitive Push
The price cuts target enterprise adoption of Alibaba's large language models as China's tech giants intensify their AI race.
- Alibaba Cloud reduced prices for its visual language model Qwen-VL by up to 85%, marking its third AI price cut of the year.
- The new pricing positions Alibaba's Qwen-VL as a direct competitor to ByteDance's recently launched visual AI model in terms of cost.
- The move highlights the intensifying competition among Chinese tech firms, including Tencent, Baidu, and Huawei, to dominate the AI market.
- Alibaba's enterprise-focused strategy has seen its Qwen models adopted by over 90,000 businesses, emphasizing applications like analytics and customer service.
- The pricing strategy aims to make advanced AI more accessible while potentially pressuring competitors to lower their prices, risking a broader industry price war.