Alibaba and Meta are both recalibrating their artificial intelligence strategies, with recent product decisions pointing to a broader industry shift toward closed or hybrid models — even among companies long associated with open-source development.
Alibaba's proprietary push
Alibaba, historically known for its open-source approach to AI, has launched three new proprietary models: Wan2.7-Image for image generation, Qwen3.5-Omni for multimodal processing, and Qwen3.6-Plus focused on coding agents. According to Bloomberg, IT Home, and Wall Street CN, the models are designed for different use cases but share a common characteristic — they are not fully open to developers.
Qwen3.5-Omni, the flagship release, can process text, images, audio, and video, supports a 256K context window, and has achieved state-of-the-art performance across 215 third-party benchmarks, the outlets reported. Wan2.7-Image emphasizes visual generation and editing, while Qwen3.6-Plus targets enterprise coding applications with a context window of up to 1 million tokens.
The move marks a notable departure from Alibaba's earlier strategy. Its Qwen family previously gained traction on platforms such as Hugging Face, where it has accumulated more than 113,000 derivative versions. By contrast, the latest models restrict access to source code and limit user modification, signaling a shift toward greater control in commercial applications.
Alibaba said it has not abandoned open source entirely and plans to release additional versions, including smaller open models. However, the company has also raised cloud and storage prices by up to 34%, underscoring its efforts to monetize AI investments. Analysts cited by Bloomberg and Chinese media interpret the pivot as a response to intensifying competition in China's e-commerce market, which has pressured profitability.
Meta's hybrid gamble
Meta is also moving toward a more selective openness strategy. According to Axios, the company is preparing a new generation of AI models that will include both open-source and proprietary versions.
The models, reportedly led by Chief AI Officer Alexandr Wang, include a text model codenamed "Avocado" and a multimodal system called "Mango," expected to launch in the first half of 2026. Open-source variants will be derived from these systems, though with certain limitations.
SiliconAngle reported that Meta may restrict features in open versions for safety reasons, potentially reducing parameter counts, omitting parts of post-training, or removing specific neural network components. Sources cited by Axios added that some advanced capabilities — such as code generation — may remain exclusive to proprietary models.
The shift reflects a broader reassessment within the industry. While Meta has positioned itself as a champion of open AI — leveraging platforms like WhatsApp, Facebook, and Instagram to reach global users — it is increasingly balancing openness with competitive and safety considerations.
Meanwhile, the company faces performance challenges. Sources told Axios that Meta does not expect its upcoming models to fully surpass next-generation systems from rivals such as OpenAI and Anthropic, though it aims to remain competitive in consumer-focused applications.
Openness gives way to control
Recent moves by Alibaba, Meta, and others suggest a gradual tightening of access to the most advanced AI models. Even companies that built their ecosystems around open-source development are now limiting the availability of flagship systems, particularly in high-value commercial and enterprise use cases.
This shift highlights a growing tension between openness and monetization. As development costs rise and competition intensifies, companies appear increasingly inclined to retain control over their most powerful technologies — reshaping the balance between innovation, accessibility, and business sustainability in the AI sector.
Article translated by Jingyue Hsiao and edited by Jerry Chen
