Alibaba plans to ask major users of the next version of its open-source Qwen AI model to share part of the revenue they generate from the technology, reports Reuters.
The Chinese technology giant is expected to introduce the measure for its upcoming Qwen3.8-Max model next week. The sources requested anonymity because the plans have not been made public.
Qwen3.8-Max will be an open-weight model, similar to the Kimi K3 model released by Chinese AI startup Moonshot last month. Open-weight models allow developers to download the learned parameters needed to run and modify the technology
This approach differs from the closed-source models developed by U.S. companies including OpenAI, Anthropic and Alphabet-owned Google.
Alibaba Follows Moonshot’s Approach
Although open-source software is generally associated with free use, Moonshot included commercial conditions in the license for Kimi K3.
Under those terms, companies that offer Kimi K3 as a service and generate more than $20 million in annual revenue must negotiate a commercial agreement with Moonshot.
Alibaba plans to introduce a similar condition with its new Qwen model, according to the two sources.
Until now, Alibaba has charged developers when they use its models through the company’s own cloud computing platform. However, it has generally allowed customers to run its open-source models inside their own data centers without paying Alibaba.
The change suggests Chinese AI companies are moving toward a common business model after gaining attention by releasing open-source models that come close to the capabilities of systems developed by OpenAI and Anthropic.
The companies are also trying to gain market share from their U.S. competitors.
Revenue-Sharing Agreements Take Shape
Commercial agreements are already emerging under which U.S. companies share revenue generated from Chinese AI models with the Chinese laboratories that developed them.
This is happening even as the White House has accused Moonshot of stealing technology from Anthropic. Chinese officials have rejected those accusations as unfounded.
According to the two sources, Moonshot requires some partners using Kimi K3 to share revenue. One source said Moonshot can demand a revenue share of up to 30%.
Alibaba also intends to seek a share of revenue from major commercial users, both sources said. However, the percentage has not yet been decided because discussions are continuing.
Moonshot did not respond to a request for comment.
Chinese IT services company Chinasoft International disclosed a revenue-sharing agreement with Moonshot in a regulatory filing last month but did not reveal the percentage involved.
The strategy follows a model widely used in Silicon Valley, where companies initially offer software at little or no cost before charging heavy commercial users and selling additional services.
US Companies Already Signing Commercial Deals
DigitalOcean Holdings CEO Paddy Srinivasan said companies pay open-weight AI developers for collaboration that helps them optimize deployments and for early access to future versions of their models.
DigitalOcean is among several U.S. companies offering Kimi K3 and other Chinese AI models.
Srinivasan confirmed that DigitalOcean has a commercial agreement with Moonshot but declined to disclose its terms.
He described the approach as a proven open-source “freemium” business model.
Based on listed input and output token prices, Kimi K3 costs roughly one-third as much as Anthropic’s Fable model.
Dan Fu, vice president of kernels at Together AI, said companies providing AI software can generate revenue by improving how the service operates, including more efficient use of tokens, which form the basic units used in AI queries.
Fu said there is also value at the application level in how companies use models and turn their output into useful products or services.
Open-Source AI Expands in the US
Open-source AI development is also growing among American companies.
Thinking Machines Lab, the San Francisco AI startup founded last year by former OpenAI Chief Technology Officer Mira Murati, released its first open-source model last month. The company is widely expected to release more powerful models in the future.
Lin Qiao, CEO and co-founder of Silicon Valley-based Fireworks AI, said she does not see a fundamental obstacle preventing U.S. companies from developing powerful open-source models.
Qiao declined to discuss Fireworks AI’s commercial arrangements with Moonshot but said the industry is waiting for more powerful open-source U.S. models to arrive.
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