Alibaba Positions for Accelerated AI Growth in Second Half of 2026

Alibaba today announced major milestones from the first half of 2026, reflecting continued progress in its AI strategy and reinforcing the foundation for sustainable growth in the evolving AI landscape.

As enterprises move from early-stage experimentation toward broader AI adoption, Alibaba has aligned its core AI operations, introduced updated models and expanded its global infrastructure. Alibaba Cloud now operates 105 availability zones across 32 regions, supporting customers with scalable and reliable AI and cloud services worldwide.

With full-stack capabilities spanning proprietary chips, cloud infrastructure, foundation models and applications, Alibaba is strategically positioned to lead in the next phase of AI adoption.

Rebuilding Around AI: Alibaba Token Hub

In March, Alibaba established the Alibaba Token Hub (ATH) Business Group under Chief Executive Officer Eddie Wu, unifying its Tongyi Laboratory, MaaS (Model-as-a-Service) Business Line, Qwen Business Unit, Wukong Business Unit and AI Innovation Business Unit. As a move to bring its core AI teams and products together under one umbrella, ATH is organized around a single organizing mission: to create, deliver, and apply tokens.

Advanced Frontier AI Models

• Qwen3.7-Max (May): A next-generation large language model with advanced agentic coding, complex reasoning and long-horizon task execution. According to Artificial Analysis, it outperforms leading Chinese models and matches top global systems.

• HappyHorse 1.1 (June): A video generation model with improved motion realism, consistency and visual quality. Since the debut of HappyHorse 1.0 in April, it has been widely adopted across short-form content, advertising, brand marketing and gaming cinematics.

• HappyOyster 1.0(June): An interactive world model featuring enhanced environmental interaction, expanded controls and rewindable storylines, enabling faster production of interactive films, games and visual experiences.

Expanding the Qwen Ecosystem

• Qwen App: Upgraded in January, the consumer AI assistant integrates services across Taobao, Alipay, Fliggy, and Amap into a unified conversational interface, enabling seamless task execution across shopping, payments, travel and navigation.

• Qwen Glasses: Unveiled at MWC Barcelona, it offers real-time translation, HD capture, transcription, visual recognition and payments. In China, users can order food and hail rides via voice commands.

• Wukong Platform: Introduced in March, this enterprise-grade agentic platform supports complex, multi-step workflows and serves as Alibaba's primary solution for autonomous enterprise operations.

Scaling Global AI Infrastructure

As part of its US$53 billion AI infrastructure commitment, Alibaba expanded its global cloud footprint with new data centers in Japan, Malaysia, France and Mexico. This brings Alibaba Cloud to 105 availability zones across 32 regions.

The new data centers deliver a comprehensive suite of enterprise-grade cloud computing services, providing a secure, scalable and robust cloud and AI infrastructure to support customers worldwide in their digital innovation journeys. By prioritizing strict data privacy and sovereignty, the infrastructure adheres to local regulatory frameworks and standards regarding cybersecurity, resilience and data governance.

Driving Impact in Healthcare and Agriculture

Alibaba is advancing medical AI through making diagnostics more reliable, affordable, and universally accessible. In early 2026, Alibaba DAMO Academy launched two AI-powered screening tools: MAOSS for early detection of fatty liver disease, and COCA for colorectal cancer screening - both achieving high diagnostic accuracy.

In addition, Alibaba is driving intelligent farming in partnership with customers. Muyuan Group, a global leader in livestock farming, has partnered with Alibaba Cloud to build an intelligent swine-farming AI model, leveraging Alibaba's Qwen LLM and advanced computing capabilities. This partnership aims to accelerate AI applications across key operational areas, including feed nutrition, breeding stock improvement, and livestock management.

These advancements reflect Alibaba's broader commitment to applying AI at scale across industries, delivering tangible value to enterprises and consumers alike.

Looking ahead, the company will continue to build on its first-half momentum to accelerate innovation, expand global reach, and unlock the next wave of AI-driven growth.###

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