$BABA-W(09988.HK)

Qwen has officially announced partial closed-source.

I've always been optimistic about Alibaba's products. In the era of token economics, the ultimate essence of product thinking is how to stuff tokens into others' wallets as much as possible, and then empty them. Currently, Alibaba's three products are all applying this thinking.

1. They've made small-sized models from 0.8B to 9B available for free download on Hugging Face. Anyone who's done edge development knows how attractive small models are to bosses, costing only 2 yuan per million tokens.

2. The latest AI development tool, Meoo, is essentially a no-code application generator hosted on Alibaba Cloud. You can describe your needs in natural language to automatically generate website code. Bundled with their own cloud services, it's a pure cash cow.

3. T-Head's business is shining. The chip business's quarterly annualized revenue has reached tens of billions. Selling cloud services to play with models with the left hand, selling chips to big companies for their own use with the right hand, the middleman profits twice from the price difference.

It can be said that in the AI era, Alibaba is the most pragmatic among Chinese concept stocks. Its product thinking aligns well with the playbook of the Chinese internet: making open-source a loss-leading business to attract customers, while charging for top-tier models for advanced services. Even if the model capabilities are a bit lacking, they can't beat its affordability and durability.