Alibaba wants a cut when businesses cash in on free Qwen

iEXExchanger
Alibaba wants a cut when businesses cash in on free Qwen

Alibaba is drafting new terms for Qwen: companies that profit from running it as a paid service will have to share revenue. The rate isn't set yet — but rival Moonshot AI already takes up to 30%.

Reuters reported this week, citing two people familiar with the matter, that Alibaba is preparing a new monetization scheme for the next open-weight release in its Qwen family. Right now, Qwen3 models ship under an Apache 2.0 license — anyone can download the weights, fine-tune them, run them on their own servers, and even build a paid product on top, without owing Alibaba anything. That's about to change with Qwen3.8-Max.

Qwen3.8-Max is the largest model Alibaba has ever open-sourced: 2.4 trillion total parameters, with roughly 95 billion active on any given request thanks to a mixture-of-experts design. Under the plan being discussed, large companies that resell access to the model as a service and generate meaningful revenue from it would need to sign a separate commercial agreement that includes a cut for Alibaba. The exact percentage hasn't been settled — negotiations are still ongoing.

The idea isn't new in China's AI industry. Rival lab Moonshot AI already runs something similar for its Kimi K3 model: once a partner's combined revenue from reselling the model crosses $20 million over twelve months, a mandatory agreement kicks in, and Moonshot's cut can reportedly reach 30%. Chinasoft International and DigitalOcean are among the companies said to have already signed such deals.

Until now, Alibaba mostly made money from Qwen through its own cloud platform — charging for API access while letting anyone run the open weights elsewhere for free. Investors seemed to like the shift: Alibaba's shares jumped 4.5% in premarket New York trading and nearly 7% in Hong Kong after the report broke.

For the wider open-source AI community, it's a signal worth watching. If China's biggest labs start charging exactly where a model actually makes money for someone, "free" open weights may keep their price tag only until they stop being a hobby project.

Questions and answers

Frequently asked questions about this article

What exactly is Alibaba changing about Qwen's license?

Qwen3 models currently ship under Apache 2.0, meaning anyone can download, modify, and deploy them commercially for free. Alibaba is preparing a different arrangement for its next open model: large companies that sell access to Qwen as a paid service and earn significant revenue from it would need to sign a separate commercial agreement that includes a revenue share.

How much would companies have to pay?

The exact rate hasn't been finalized — talks with major partners are still ongoing. A useful reference point is rival Moonshot AI's Kimi K3 model, where a $20 million revenue threshold over twelve months triggers a mandatory deal, with Moonshot's cut reportedly reaching up to 30%.

Who would this actually affect?

The plan targets large resellers — cloud providers and services that build a business on top of Qwen for other companies. Smaller developers and researchers using the model for free, in-house purposes don't appear to fall under the new terms.

How did markets react to the news?

Positively. After Reuters broke the story, Alibaba's shares rose 4.5% in premarket New York trading and almost 7% on the Hong Kong exchange, suggesting investors see this as a credible path for the company to monetize its open-source AI push.