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Alibaba takes aim at OpenAI and Anthropic with Qwen3.8-Max launch
Alibaba on Monday introduced Qwen3.8-Max, its largest artificial intelligence model to date, expanding its enterprise AI portfolio with an open-weight model designed for software engineering, multimodal reasoning, and other knowledge-intensive business workloads.
In a blog post announcing the launch, Alibaba described Qwen3.8-Max as a 2.4-trillion-parameter mixture-of-experts (MoE) model that activates only about 95 billion parameters during inference.
The company said the architecture is intended to improve inference efficiency while supporting coding, reasoning and multimodal tasks, with open-weight versions scheduled for release next week through Alibaba Cloud’s Model Studio.
“We believe it’s one of the most powerful model available today, compatible to leading frontier AI models, second only to Fable 5,” Alibaba said in an X post.
Benchmarks target Anthropic and OpenAI’s coding modelsAlibaba published internal test results comparing Qwen3.8-Max against Claude Opus 4.8, Claude Fable 5, and OpenAI’s GPT-5.6 Sol on coding benchmarks, including SWE-bench Pro and a proprietary evaluation the company calls NL2Repo-Bench.
The company said it evaluated competing models using each vendor’s own coding harness, Claude Code for Anthropic’s models and Codex for GPT-5.6 Sol, and reported the highest published score across available configurations for each rival.
Charlie Dai, vice president and principal analyst at Forrester, said the launch signals Alibaba is closing ground on proprietary leaders, though that isn’t the full picture.
“Alibaba is narrowing the gap, but the larger story is the rapid maturation of open-weight models,” Dai said. “Enterprises increasingly have credible alternatives to proprietary frontier models, particularly for software engineering, domain customization, sovereignty, and cost-sensitive deployments, where openness often matters as much as absolute model performance.”
Company touts a 16-day autonomous coding runAlibaba said it tested the model on three unsupervised, multi-day coding projects requiring it to take a task from an empty project folder to completion without human assistance, including one project the company said took 16 days to complete on its own.
Alibaba also highlighted enterprise applications across legal compliance, financial analysis, engineering design, quantitative research and multimodal content creation, saying the model is intended to complete entire business workflows rather than individual AI-assisted tasks.
Amit Jena, development manager for AI at Kanerika, said that the claim deserves more scrutiny than it has received.
“The claim worth examining is not the parameter count. Alibaba says the model completed a software engineering project in 16 days. That sentence has been reprinted everywhere and interrogated nowhere,” Jena said. “Sixteen days of what? How many times did a human step in? Did the output survive code review?”
Jena said the open-weight commitment itself should also be read carefully. “Publishing weights is a separate act from opening an API endpoint,” he said. “Until there is a repository, a licence and a model card, open-weight describes an intention.”
Analysts say inference efficiency isn’t the real constraintAlibaba’s mixture-of-experts architecture activates roughly 95 billion of the model’s 2.4 trillion parameters per request, a design the company says lowers inference costs.
Dai said that tradeoff now matters more to enterprise buyers than raw model size. “Inference efficiency now matters more than raw model size for most enterprises,” he said. “Activating only a fraction of total parameters can significantly reduce serving costs and infrastructure requirements, making frontier-class performance more accessible for production deployments where scalability, latency, and economics are often bigger concerns than benchmark leadership.”
Jena said efficiency gains matter less than an organization’s ability to actually test the model. “Efficiency stopped being the interesting question. The constraint that actually binds is evaluation throughput,” he said.
Nitish Tyagi, senior principal analyst at Gartner, said the significance of the release lies less in the parameter count than in what it signals about competitive pressure on AI deployment costs.
“Gartner has previously predicted that, without stronger cost controls, AI coding expenses could exceed the average developer’s salary,” Tyagi said. “The combination of open weights, a mixture-of-experts architecture, and a one-million-token context window represents a meaningful step toward making AI-augmented software development more economically viable.”
Tyagi cautioned that enterprises need to look beyond inference costs when weighing the model for production use.
“Many organizations outside China may be hesitant to rely on models hosted within China, leading them to deploy through hyperscalers or on-premises infrastructure, both of which introduce additional costs,” he said.
Open-weight models also typically lack the indemnification protections that come with commercial AI vendors, he said, meaning enterprises need their own security, governance, and code-scanning controls to catch copyright and intellectual property risks before production deployment.
What CIOs should look out forJena said the flagship model announced Monday may not be the one enterprises end up running.
“Qwen3.8-27B, announced alongside the flagship and almost entirely ignored in coverage,” is the more deployable option for most organizations, he said, since it can run on infrastructure they own and fine-tune on their own data.
Dai said enterprise leaders evaluating the release should prioritize transparency and total cost of ownership over headline figures. “The key question is whether Qwen3.8 delivers measurable business outcomes, enterprise-grade reliability, lower total cost of ownership, and options for digital sovereignty compared with competing models,” he said.
The article originally appeared on InfoWorld.
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How AI is killing smartphone apps in China
Chinese smartphone makers have been followers in the global market, embracing the concepts and paradigms set in the past 20 years by Apple and Google. But AI may be giving the Chinese an opportunity to break away and set their own path forward.
Specifically, Chinese companies are integrating AI more fully into smartphones, and also using AI for limited robotics in phones. Here’s what you need to know about these emerging trends.
China’s ZTE recently showed its Nubia NaviX Ultra. The phone runs ByteDance’s Doubao AI agent, which users can access with voice commands or by pressing a button on the phone. The phone has no home screen and no conventional app store.
Another Chinese company, called StepFun — it was founded in 2023 by Jiang Daxin, a former Microsoft vice president and chief scientist at Microsoft’s Software Technology Center Asia — sells a phone called the StepX Neo. It runs a proprietary operating system called Step AOS based on Android, Linux, and an RTOS containing a built-in AI agent called Step Amoo. The StepX Neo splits phone functions into four primitives (communication, apps, files, system tools) that the agent recombines based on the stated goals of the user.
Honor, a phone maker spun off from Huawei, has an AI agent the company built with input from Alibaba called the YOYO Intelligent Agent. It ships on Honor’s entire MagicOS 10-eligible lineup.
Note: an American company is enabling this. All three phones use Anthropic’s Model Context Protocol (MCP) to give system-level access to the agents.
None of these phones will become available in the United States. ZTE is banned from the US by the FCC over national-security concerns, while the StepFun and Honor phones are built for the Chinese market with no US version planned.
All modern smartphones can run AI. By simply visiting the Apple App Store or the Google Play Store, anyone can download dozens of AI apps, including those offered by the frontier model companies. Or they can use the AI services and tools built in to phones by Apple and Google.
How agentic AI phones are differentWhat’s different about the new agentic AI phones in China is that the operating system itself has an agentic AI layer that enables it to function across apps and instead of apps.
While agentic AI phones represent a minority of the current market, they feel like the future. And that future is consequential. First, it’s a another step toward independence from Android. Google’s services layer is already gone from China. Now the Android app layer is being replaced by vertically integrated agent stacks owned by Chinese super-app companies.
Despite building agentic features that cross app boundaries to a limited degree, Apple and Google are unlikely to allow third-party agents to replace the app layer of their mobile OSs anytime soon.
Apple takes 15% to 30% of app revenue. And (according to an estimate introduced during the Epic v. Apple/Google litigation but not confirmed by Google), the Play Store has historically accounted for somewhere between 17% and 26% of Google’s operating income. The entire economic logic of iOS and Android depends on apps. An agentic layer that dissolves those apps into tasks isn’t something either company wants to think about. The Chinese OEMs can blow up the app model because they had no stake in it.
Meanwhile, the AI trend is suffocating mobile app in-app purchases, which dropped by roughly 40% by early 2026, even as people pay more for those purchases compared to a few years ago (because they’re dominated by subscriptions to AI and vibe-coded apps). In other words, even inside the app stores, there’s a shift from the old app model to AI replacements.
AI is not only changing the software model, but the hardware model, too.
Robot phonesAnother categorical way China is splitting off from the global smartphone concept is the nascent market of robot phones. A robot phone is one that uses AI to control physical robotic components on an actual phone.
The leading contender in this field is a device called the Honor Robot Phone, which I wrote about in March. A leaked unboxing video of the Honor Robot Phone appeared this week on the Chinese social network Weibo.
The robotic element is a gimbal with a 200-megapixel camera on it. One basic use is that the phone can remain stationary while propped up on a table or clamped to a tripod, while the camera tracks a moving subject using AI. Another use is to walk while using it and let the gimbal smooth out the jiggling and movement. Software on the phone also enables automated cinematic special effects.
But the real leap forward is in “self expression” for the phone. The Honor Robot Phone exhibits subtle Attachment Economy features. It shakes its “head” no and nods yes. And it can do a “backflip” to “cheer you up.” The phone gets a personality.
Honor plans to launch the phone on Aug. 12 in China.
So-called “robot phones” are even more rare in China than agentic AI phones. Still, the Honor Robot Phone represents another Chinese departure from the Silicon Valley smartphone hardware model of a static pane of glass. The Honor Robot Phone has a body. It feels like the future, too, as it’s one of the rare products in the emerging Attachment Economy, where humanlike attributes (in this case, gestures and body language) are deployed to make the consumer more “attached” to devices that seem like they have thoughts and feelings.
The AI future of phonesAs the Chinese smartphone market splits off from the American one, it presents an alternative for the world. Because if the agentic AI phones succeed in China, they’ll almost certainly be offered internationally.
That represents not only hardware sales, but the penetration of Chinese super-apps, Chinese financial services, Chinese AI-based information (and along with it, the Chinese government’s world view, we can expect).
The only question is: Will the world prefer the Chinese agentic AI approach or the US AI app model?
Adding to the complexity is the coming wave of AI wearables, most of which will likely be wirelessly “tethered” to smartphones that provide intelligence and connectivity. Soon, we’ll be conversing with our glasses and watches. Our glasses and watches will be “conversing” with our phones. And our phones will be conversing with AI models that represent the values, beliefs and biases of their creators.
The Chinese agentic AI movement represents a split in how phones work and how the people worldwide interact with information, technology and each other.
AI disclosures: This article is 100% human-written by the author, Mike Elgan. Some research, ideation, and fact- and grammar-checking was performed using AI tools.
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