Alibaba is all set to introduce a new licensing model for its next open-source artificial intelligence system. This will bring a major change in how the Chinese technology giant plans to generate revenue from AI.
According to a Reuters report, the company will require large commercial users of its upcoming Qwen3.8-Max model to share a portion of the revenue earned from AI-powered products and services built on the model. The new framework is expected to launch within days.
The proposed licensing model will target only enterprises generating more than $20 million annually from AI-based offerings. Startups, researchers, academic institutions, and smaller developers are expected to continue accessing the model free of charge under Alibaba's open-source approach.
Alibaba will work on revenue-sharing deals with enterprises that meet certain criteria. This approach helps Alibaba maintain developer traction while earning ongoing revenues from its success in the market.
Alibaba's approach closely follows Chinese AI startup Moonshot AI, which recently adopted a similar revenue-sharing model for its Kimi K3 open-source AI system.
The move also reflects a wider shift across the AI industry. Companies are increasingly embracing freemium business models that offer powerful AI models free to developers before monetising enterprise usage through premium services, cloud infrastructure, commercial licensing, and early-access features.
Looking ahead, Alibaba's licensing framework could become a defining test for open-source AI monetisation. The model seeks to maintain free access for innovation while ensuring companies that build large-scale commercial businesses on open-source AI contribute to the ecosystem financially.
Also Read: Beyond ChatGPT: OpenAI Reportedly Building Expressive AI Companion With Moving Parts