Alibaba (BABA) Launches New Qwen3 Model as AI Race Speeds Up
Alibaba Cloud has launched its new Qwen3-Next architecture, featuring the Qwen3-Next-80B-A3B model, which is 10 times faster than its predecessor and reduces training costs by 90%. The model competes with larger versions and is designed for consumer hardware. Additionally, Apple has chosen Alibaba's Qwen models for its services in China. Analysts are optimistic about Alibaba's stock, with a Strong Buy consensus and a price target suggesting a 7.33% upside.
On Friday, Alibaba Cloud launched its new Qwen3-Next architecture, starting with the Qwen3-Next-80B-A3B model. The company said it runs up to 10 times faster than the Qwen3-32B model released in April, while cutting training costs by 90%. Despite its size, it matches the performance of the larger Qwen3-235B and can run on consumer hardware.
BABA Builds Open-Source Reach
Alibaba said the boost comes from new design features, including hybrid attention, a mixture-of-experts (MoE) setup, and multi-token prediction. These upgrades let the model handle longer text, work more efficiently, and stay stable during training.
The company also released a reasoning-focused version, Qwen3-Next-80B-Thinking, which it said beat Google's (GOOGL) Gemini-2.5-Flash-Thinking in third-party tests. By sharing its models on GitHub and Hugging Face, Alibaba Cloud is pushing Qwen as part of what it calls the world's largest open-source AI system.
Apple Ties Add to Momentum
The release follows reports that Apple agreed to use Alibaba's Qwen models for its "Apple Intelligence" service in mainland China. Globally, Apple (AAPL) uses OpenAI's GPT models for its Apple Intelligence features, but in China it uses Alibaba's Qwen due to local restrictions. This makes Qwen an important part of Apple's strategy in one of its largest markets.
Alibaba's new model comes as rivals like OpenAI, Google, and Anthropic release their own upgrades to stay ahead in the AI race. By focusing on speed, lower cost, and ease of use, Alibaba could attract more developers and grow its cloud business.
Is Alibaba Stock a Good Buy Right Now?
Analysts remain highly bullish about Alibaba's stock trajectory. With 16 Buy ratings and one Hold rating, BABA stock commands a Strong Buy consensus rating. Also, the average Alibaba price target of $166.43 implies about 7.33% upside potential from current levels.
