Alibaba Group has launched Qwen 3, a new version of its artificial intelligence model. This release is part of the growing competition in AI within China, where local startups like DeepSeek have created high-performance models at lower prices than those from Western companies.
Key Features of Qwen 3

Qwen 3 is a large-language model that combines traditional AI features with advanced reasoning skills. The top model has 235 billion parameters and uses a mixture-of-experts design that improves efficiency.
It includes a “thinking mode” that allows developers to switch between step-by-step reasoning for complex questions and quick answers for simpler ones. This flexibility makes Qwen 3 more useful for developers.
Qwen 3 has a native context window of 32 K, which can be extended to 128 K with YaRN. It activates only eight out of 128 experts per token, which lowers the cost of inference compared to denser systems. The model was pre-trained on around 36 trillion tokens in 119 languages, using additional math and code data to broaden its knowledge.
Market Impact and Competition
The launch of Qwen 3 comes as Chinese tech companies enhance their AI capabilities. Baidu recently introduced its Ernie 4.5 Turbo and Ernie X1 Turbo models, increasing the competition. Alibaba’s move responds to DeepSeek’s success in creating effective AI models at cheaper prices, which challenges the dominance of Western leaders like Google and OpenAI.
Qwen 3 is open-source, with models available on platforms like Hugging Face and GitHub. This is expected to encourage community participation and help developers adopt it more quickly. Analysts see this as a strong step by Alibaba to compete with U.S. models and strengthen its role in the global AI field.
Implications for the AI Sector
The introduction of Qwen 3 and other Chinese AI models shows China’s rapid progress in AI research and development, backed by both government support and private innovation. The competition is prompting U.S. research labs to improve their AI technologies and has sparked discussions about limiting access to important AI tools, like high-end chips, for Chinese companies.
As Alibaba continues to invest in AI, its focus on open models and advanced reasoning skills positions it to meet the growing need for AI solutions in various industries. The performance of Qwen 3 will be closely monitored, not only for its impact on Alibaba’s stock but also for its effects on the global AI market.