HANGZHOU, China: Alibaba plans to require major commercial users of the next version of its open-source Qwen AI model to share a portion of the revenue they generate from the software, according to two people familiar with the company's plans.

The move would mark a shift in how Alibaba monetizes its open-source AI offerings and follows a similar approach adopted by Chinese AI startup Moonshot for its Kimi K3 model.

Alibaba's upcoming Qwen3.8-Max model is expected to launch next week as an open-source, open-weight model, allowing developers to download and adapt the underlying technology. The sources, who requested anonymity because the plans are not public, said Alibaba intends to introduce a revenue-sharing requirement for large commercial users, though the percentage has not yet been finalized.

Until now, Alibaba has charged developers to use its AI models through its cloud platform while allowing most open-source versions to run in customers' own data centers without payment.

The strategy suggests Chinese AI developers are converging on a new business model as they compete with U.S. rivals such as OpenAI, Anthropic and Google. Rather than charging for access, companies release models freely but seek compensation from customers generating significant commercial revenue.

Moonshot introduced a similar provision with its Kimi K3 model last month. Under its licensing terms, companies generating more than $20 million in annual revenue from offering the model as a service must negotiate a commercial agreement with Moonshot. One of the sources said Moonshot seeks revenue shares of up to 30%. Moonshot did not respond to a request for comment.

Chinese IT services provider Chinasoft International disclosed last month that it had entered into a revenue-sharing agreement with Moonshot, though it did not reveal the percentage.

The approach mirrors the "freemium" model widely used in open-source software, where products are initially offered at little or no cost before companies charge for commercial use or additional services.

"You pay for collaboration with these open-weight model labs to make sure that you're optimizing your deployment. You pay for getting early access for the next revision of the model," said Paddy Srinivasan, chief executive of cloud computing company DigitalOcean Holdings, which offers Kimi K3 and other Chinese AI models. He confirmed his company has a commercial agreement with Moonshot but declined to discuss details.

"This is a tried and tested open-source 'freemium' model," Srinivasan said.

Open-source AI continues to expand globally, with U.S. startup Thinking Machines Lab, founded by former OpenAI Chief Technology Officer Mira Murati, releasing its first open-source model last month and expected to introduce more advanced versions in the future.