Alibaba launches Qwen3.5 AI model with visual agentic capabilities and 60% cost reduction

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Alibaba unveiled Qwen3.5, its latest AI model designed to execute complex tasks independently across phone and computer apps. The model delivers 60% lower deployment costs and ranks higher than OpenAI's GPT-5.2, Anthropic's Claude Opus 4.5, and Google's Gemini 3 Pro in several benchmarks, intensifying competition in China's AI sector.

Alibaba Qwen3.5 Marks Major Advance in Cost Efficiency

Alibaba has introduced Qwen3.5, a new AI model built specifically for the agentic era, delivering significant improvements in both cost efficiency and performance. The Chinese tech giant announced that Qwen3.5 enables up to 60% reduction in deployment costs compared to its predecessor while maintaining high performance levels

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. The model is also eight times better at processing large workloads, positioning it as a compelling option for developers and enterprises looking to optimize their AI infrastructure

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Source: Seeking Alpha

Source: Seeking Alpha

The first model in the open-weight Qwen3.5 series demonstrates outstanding results across a range of benchmarks, ranking higher than OpenAI's GPT-5.2, Anthropic's Claude Opus 4.5, and Google's Gemini 3 Pro in several tests

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. According to Alibaba, the model is designed to help developers and enterprises move faster and do more with the same compute, setting a new benchmark for capability per unit of inference cost.

Visual Agentic Capabilities Enable Complex Task Execution

What sets Qwen3.5 apart is its visual agentic capabilitiesβ€”the ability to execute complex tasks independently and take actions across phone and computer apps. This functionality represents a shift toward more autonomous AI systems that can operate with minimal human intervention. Alibaba claims Qwen3.5 matches or exceeds leading models in versatility and improved performance according to published benchmarks

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Source: Silicon Republic

Source: Silicon Republic

The model is built on a hybrid architecture that allows only 17bn parameters to activate per forward pass, while comprising a total of 397bn parameters. This design optimizes speed without sacrificing capability, enabling the model to handle demanding workloads efficiently

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China's AI Sector Intensifies Competition in Global AI Race

Alibaba's launch comes amid fierce competition in China's AI sector, where multiple Chinese tech companies are rapidly advancing their capabilities. ByteDance released an upgraded version of its Doubao chatbot app over the weekend, which now serves close to 200m users. The TikTok parent also launched Seedance 2.0, its latest AI video generator

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Other Chinese AI leaders have launched their own new models recently, including Zhipu, which unveiled GLM-5 trained entirely using Chinese chips, MiniMax, which released M2.5, and the Alibaba-backed Moonshot AI, which came out with Kimi K2.5

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. These developments signal that Chinese companies are catching up to their US counterparts in the global AI race.

The timing is particularly notable as these launches come ahead of DeepSeek's new V4 model, expected later this month. Reports suggest the new DeepSeek model could outperform rivals ChatGPT and Claude, particularly on tasks involving long coding prompts

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. For developers and enterprises, the rapid pace of innovation from China's AI sector means more options at competitive price points, though it also raises questions about which platforms will emerge as industry standards and how Western tech giants like OpenAI, Google, and Anthropic will respond to this intensifying competition.

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