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Alibaba Slashes Prices On LLMs By Up To 85% As China AI Rivalry Heats Up - Slashdot

Jan 01, 2025 - slashdot.org
Alibaba is significantly reducing prices on its large language models, with cuts of up to 85%, to attract more enterprise users and enhance its standing in China's competitive AI market. The company's cloud computing division, Alibaba Cloud, announced these reductions for its visual language model, Qwen-VL, which can understand both text and images. This move is part of a broader trend among major Chinese tech firms like Tencent, Baidu, JD.com, Huawei, and Bytedance, all of which have launched their own language models in recent months to capitalize on the growing interest in AI technology.

This is not Alibaba's first instance of price cuts to encourage the use of its AI products. Earlier in the year, the company reduced prices on various core cloud products by up to 55%, and in May, it slashed prices on its Qwen AI model by as much as 97% to stimulate demand. Unlike some competitors focusing on consumer AI chatbots, Alibaba is concentrating its large language model efforts on the enterprise sector. As of May, its Qwen models have been adopted by over 90,000 enterprise users.

Key takeaways:

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  • Alibaba is cutting prices on its large language models by up to 85% to attract more enterprise users.
  • The price cuts are being applied to Alibaba's visual language model, Qwen-VL, which can understand both texts and images.
  • Alibaba has previously announced significant price reductions on its AI products to boost demand, including a 97% cut on its Qwen AI model in May.
  • Alibaba is focusing its large language model efforts on the enterprise segment, with over 90,000 enterprise users deploying its Qwen models.
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