Alibaba plans revenue share from commercial users of Qwen AI model
Alibaba plans to charge large commercial users a revenue share for its next-generation open-source AI model, Qwen. This move follows a similar strategy by Moonshot AI and signifies a shift in the open-source AI business model.
Alibaba is reportedly planning to implement a revenue-sharing model for commercial users of its latest open-source artificial intelligence model, Qwen. The initiative, revealed by two sources familiar with the matter to Reuters, would require large businesses using the model to pay a percentage of their earnings.
This approach mirrors a strategy already employed by Chinese AI firm Moonshot AI with its Kimi K3 model. Moonshot AI's licensing terms mandate that any entity generating over $20 million in annual sales by offering the model as a service must reach a commercial agreement. Reports suggest Moonshot AI has sought revenue shares as high as 30%.
Alibaba intends to introduce a similar arrangement for its Qwen model next week. While specific details on the revenue share percentage are still under negotiation, this marks a significant commercial shift. Currently, Alibaba charges for the use of its models hosted on its own cloud platform, but users running the open-source models within their own data centers generally do not incur fees.
DigitalOcean, a cloud computing provider, confirmed it has a commercial agreement with Moonshot AI but declined to share specifics, describing it as a "market-proven open-source freemium model."