Alibaba Rises as It Prepares Major Update to Its Flagship AI App

Alibaba (BABA) shares climbed nearly 5% in Hong Kong after Bloomberg reported that the company is preparing a major overhaul of its mobile AI app, aiming to position it as a full AI agent similar to OpenAI’s ChatGPT.

The existing “Tongyi” app will be renamed to “Qwen,” aligning with Alibaba’s well-known AI model. The revamped version will gradually introduce agentic-AI capabilities, including features that support shopping through Taobao — potentially within the coming months.

Why Alibaba Is Making This Move

Shift toward fully agentic AI, mirroring ChatGPT’s evolution.
Unifies the brand under the Qwen name for a cleaner user experience.
Leverages Taobao’s ecosystem to bring new users into Alibaba’s AI products.
Aims to catch up with rivals ByteDance’s Doubao and Tencent’s Yuanbao, which currently dominate China’s AI-app landscape.
The updated Qwen app will remain free to use — at least for now.

Massive AI Investment Already Underway

Alibaba has already committed over $50 billion to AI development, part of a broader push by Chinese tech firms racing to secure hardware and build full-stack AI capabilities amid ongoing U.S.–China technology tensions.

AI Momentum Lifts Chinese Tech Stocks

The optimism wasn’t limited to Alibaba:

Baidu (BIDU) traded higher after unveiling two new AI semiconductors.
Tencent (TCEHY) also gained following strong AI-driven earnings results.