Chinese firms, particularly tech giants Alibaba and DeepSeek, are making significant strides in the realm of open-source artificial intelligence (AI) models. These companies are actively promoting the use of open-source models, which allow developers worldwide to download, modify, and enhance AI technologies. Alibaba made a notable move by publishing its first open-source model in August 2023, joining the global movement led by Meta's Llama models in the United States. Unlike proprietary models such as those from OpenAI, open-source AI models do not directly generate revenue for the companies involved.
Alibaba is open-sourcing four models from its latest Wan2.1 series. This series represents Alibaba's foundational AI model, capable of generating images and videos from both text and image inputs. These models will be accessible via Alibaba Cloud's Model Scope and Hugging Face, a massive repository for AI models. By embracing open-source technology, Alibaba aims to foster innovation and collaboration within the AI community.
The decision to release these models as open-source aligns with a broader trend among Chinese tech companies. DeepSeek has also launched an open-source model, further enhancing the landscape of AI development in China. These efforts reflect a strategic approach to establish these companies as leaders in AI technology while contributing to the global AI ecosystem.
The impact of these initiatives extends beyond technological advancements. Alibaba's Hong Kong-listed shares surged nearly 5% following the announcement of its open-sourcing strategy. This positive market response is part of a broader trend, as Alibaba's stock has shown a remarkable 66% increase in 2025 to date. The company's improved financial performance can be attributed to its growing reputation as a key player in China's AI sector and broader support from Chinese President Xi Jinping for the domestic private sector.