Alibaba to Charge Big Users for Open-Source AI Model

Alibaba plans to charge major users of its next open-source AI model. The company will ask for a share of revenue generated from its Qwen3.8-Max model. This model is open-source, meaning its underlying settings are available for download. What's interesting is that while open source is often seen as free, Alibaba's approach mirrors a trend seen with Chinese AI startup Moonshot. Moonshot's Kimi K3 model has a provision requiring commercial users generating over $20 million in annual sales to arrange a commercial agreement. Alibaba plans a similar measure for its model next week. Currently, Alibaba charges for model use on its cloud platform but allows free use in customers' own data centers for most open-source offerings. This new plan shows Chinese AI firms are developing a business model to compete with U.S. rivals. They aim to offer software at low or no cost initially, then charge for heavy commercial use and additional services. This could impact how businesses use and monetize open-source AI.