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Alibaba's Qwen AI ecosystem has reached over 700 million downloads, establishing it as the most widely used open-source AI system. In December 2025, Qwen downloads surpassed the total of the next eight AI models combined.

Alibaba's cloud revenue grew 34% year-on-year in fiscal Q2 2026, driven by AI demand. The company invested approximately 120 billion yuan in AI infrastructure, with AI-related revenue showing triple-digit growth for nine consecutive quarters.

Alibaba launched Quark AI glasses in November, enhancing competition in consumer wearables. Meanwhile, Chinese company DeepSeek is set to launch its advanced AI model V4 in February, aiming to improve coding capabilities and challenge Western rivals.

The model is expected to excel in programming tasks and facilitate access to sophisticated AI tools. Anthropic has launched Claude for Healthcare, focusing on operational tasks for healthcare providers, emphasizing data privacy.