3 weeks ago
Alibaba plans revenue share for users of Qwen open-source model
Some smart computer programs, called AI models, are like helpful robots that companies can use to build apps.
Alibaba, a very big company in China, makes one called Qwen.
Alibaba now plans to ask big companies that use Qwen to share some of the money they earn from it.
Another Chinese company, Moonshot, already does this with its model called Kimi K3.
If a business makes more than $20 million in a year using Kimi K3, it must make a special deal with Moonshot.
Moonshot can take up to 30% of that money.
This way of giving something away free but charging heavy users is called a 'freemium' model.
Some American companies, like OpenAI, Anthropic and Google, keep their AI models secret instead of sharing them.
There is also a big argument: America says Moonshot copied Anthropic's technology, but China says that is not true.
Companies like DigitalOcean, Together AI and Fireworks AI make money by helping customers use models like Kimi K3 well.
Alibaba plans to charge major users of its next open-source AI model, Qwen3.8-Max, a share of the revenue they make, according to two people familiar with the plans.
Moonshot's Kimi K3 license already requires service providers earning over $20 million in annual sales to reach a commercial agreement, with Moonshot taking up to a 30% revenue share.
Alibaba previously charged developers only when models were hosted on its own cloud platform, allowing most open-source offerings to be used free in customers' own data centers.
The White House has accused Moonshot of stealing technology from Anthropic, a claim Chinese officials have rejected as unfounded.
U.S. firms like DigitalOcean, Together AI and Fireworks AI host and resell Chinese models, while Thinking Machines Lab released its first open-source model last month.
- Who
- Alibaba and Chinese AI startup Moonshot, U.S. rivals OpenAI, Anthropic and Google, and firms such as DigitalOcean, Together AI, Fireworks AI, Chinasoft International and Thinking Machines Lab, founded by OpenAI's former CTO Mira Murati.
- What
- Alibaba plans to take a revenue share from big users of its next open-source AI model, Qwen3.8-Max, following Moonshot's similar licensing model for Kimi K3.
- Where
- China, home to Alibaba and Moonshot, with U.S. companies hosting and reselling the models.
- When
- Alibaba plans to implement the measure next week; Moonshot released Kimi K3 last month.
- Why
- To build a sustainable 'freemium' business model as Chinese AI firms push to take market share from their U.S. rivals.
Open-source supporters
Commercial model makers
Charging heavy users of open-source models
Open-source supporters
Open-source, open-weight models are often thought of as free, and Alibaba has allowed most of its open-source offerings to be used free in customers' own data centers.
Commercial model makers
Charging heavy commercial users is a 'tried and tested open-source freemium model' that funds continued development, following a common Silicon Valley playbook.
Moonshot-Anthropic technology dispute
Open-source supporters
Chinese officials say the White House accusation that Moonshot stole technology from Anthropic is unfounded.
Commercial model makers
The White House has accused Moonshot of stealing technology from Anthropic.
Key facts
- Company
- Alibaba
- Model
- Qwen3.8-Max
- Model type
- Open-source, open-weight
- Revenue share (Moonshot Kimi K3)
- Up to 30%
- Revenue threshold (Kimi K3)
- $20 million in annual sales
- Timing
- Measure planned for next week
- U.S. closed-source rivals
- OpenAI, Anthropic, Google
- Related disclosure
- Chinasoft International disclosed a revenue-sharing agreement with Moonshot in a regulatory filing
Quotes
Paddy Srinivasan
CEO of cloud computing firm DigitalOcean Holdings
“"You pay for collaboration with these open-weight model labs to make sure that you're optimizing your deployment. You pay for getting early access for the next revision of the model."”
deccanchronicle.com
indianexpress.com
“"At the application layer, there's value out there for how you use it, how you actually get the models and the tokens to do something useful."”
deccanchronicle.com
indianexpress.com
Lin Qiao
CEO and co‑founder of Fireworks AI
“I don’t see a fundamental barrier to powerful open‑source U.S. models.”
indianexpress.com







