Stock Markets February 16, 2026

Alibaba Launches Qwen3.5, Positioning Model for 'Agentic AI' Workloads

New release claims major cost and performance gains and introduces autonomous multi-app capabilities as competition intensifies in China

By Ajmal Hussain
Alibaba Launches Qwen3.5, Positioning Model for 'Agentic AI' Workloads

Alibaba on Feb 16 introduced Qwen3.5, an AI model engineered to carry out complex tasks autonomously. The company says the model is significantly cheaper and faster on heavy workloads than its predecessor, adds visual agentic features for taking actions across apps, and shows benchmark advantages over several leading U.S. models. The move comes amid fierce domestic competition from ByteDance's Doubao and the anticipated follow-up from DeepSeek.

Key Points

  • Alibaba says Qwen3.5 is 60% cheaper to use and eight times better at handling large workloads than its immediate predecessor - impacting cloud and enterprise AI compute economics.
  • The model adds "visual agentic capabilities" enabling autonomous actions across mobile and desktop apps, a feature positioned to affect enterprise productivity and app ecosystems.
  • Published benchmarks show Qwen3.5 outperforming Alibaba’s prior iteration and cited U.S. models GPT-5.2, Claude Opus 4.5, and Gemini 3 Pro; the domestic competitive landscape includes ByteDance’s Doubao 2.0 and an expected DeepSeek model release.

Alibaba unveiled Qwen3.5 on Feb 16, describing the model as built for what it calls the "agentic AI era" - systems that can act independently to complete complex tasks. The company highlighted two headline technical claims: the model is 60% cheaper to operate than its immediate predecessor, and it processes large workloads eight times more effectively than that prior iteration.

Beyond raw performance and cost metrics, Alibaba said Qwen3.5 includes "visual agentic capabilities," enabling the model to take autonomous actions across mobile and desktop applications. In a company statement, Alibaba framed the release as a means 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."

Alibaba published a set of benchmarks alongside the announcement. Those comparative results show Qwen3.5 outperforming the company’s previous version and selected U.S. models cited by name in the materials: GPT-5.2, Claude Opus 4.5, and Gemini 3 Pro.

The launch arrives as Alibaba seeks to expand adoption of its Qwen chatbot app in China, where competition is intense. ByteDance recently upgraded its chatbot to Doubao 2.0, positioning that release similarly for the AI agent era. ByteDance’s app currently holds the largest user base in China for chatbots, approaching 200 million users.

Alibaba has already taken several steps to increase engagement around Qwen. Earlier this month the company ran a coupon giveaway that incentivized purchases of food and drink through the Qwen chatbot, an initiative that the firm says drove a seven-fold increase in active users despite encountering some glitches during the promotion.

The company’s Qwen3.5 announcement did not reference DeepSeek, one of the domestic startups that rose rapidly in prominence last year. DeepSeek became notable for breaking through globally in that period and is expected to release a new-generation model in the coming days, a development that the market is watching given the global tech share selloff the company triggered a year ago.


Alibaba’s messaging centers on improving capability per unit of inference cost while adding autonomy to application workflows. The company also referenced prior responses to competitive pressure: last year it released Qwen 2.5-Max, which it said was superior to a notable model from DeepSeek.

As Chinese AI vendors continue to iterate, Alibaba’s announcement highlights both the technical metrics it believes matter to enterprise customers - cost efficiency and large-workload throughput - and product-level features that support autonomous actions across apps. How users and enterprises translate those claims into sustained engagement remains to be seen amid active competition and impending model releases from rivals.

Risks

  • Market reception and user retention are uncertain despite reported spikes in active users from recent promotions; this affects consumer app monetization and ad/commerce channels.
  • Benchmarks were published by Alibaba and do not mention DeepSeek; independent verification and cross-vendor comparisons remain an uncertainty for enterprise buyers and investors.
  • Intense competition from ByteDance’s Doubao, which has the largest chatbot user base in China approaching 200 million, and an anticipated DeepSeek model release create near-term competitive pressure on adoption and differentiation.

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