Alibaba Group is repositioning its mobile artificial intelligence strategy with a significant rebrand of its core AI app, as per a Bloomberg report.
The existing Tongyi platform will be relaunched as Qwen, named after the company’s proprietary large language model, and redesigned to support advanced agentic capabilities.
The move signals a new chapter in Alibaba’s ambition to monetise AI through consumer-focused tools and integrate automation directly into its e-commerce systems.
This transformation is not simply cosmetic. Alibaba is evolving Qwen into a full-stack AI agent capable of performing user-driven tasks within Taobao and other retail platforms.
The company has allocated over 100 engineers to the Qwen overhaul, which is already underway across both iOS and Android, as per the report.
While the initial update will remain free to users, Alibaba’s longer-term plan is to convert usage into revenue by embedding AI assistance into everyday mobile shopping.
Qwen rebrand streamlines Alibaba’s AI strategy
The rebranding of Tongyi to Qwen creates a unified consumer identity that aligns with the internal AI development taking place across the Alibaba ecosystem.
The Qwen Chat app, previously running with limited functionality, will be aligned under the same banner, offering a more consistent user experience and interface, the report added.
This streamlining forms part of Alibaba’s broader push to consolidate its AI offerings and build brand equity in a highly competitive market.
As rivals such as ByteDance and Tencent accelerate AI development through their own platforms, Alibaba is under pressure to distinguish its technology by combining functionality with real-world use cases.
Qwen is designed to perform as a context-aware, task-executing assistant, initially focused on consumer-facing scenarios.
By integrating directly with Taobao, Alibaba intends to reduce friction in online purchases and build stickiness around the Qwen ecosystem.
This architecture brings a fresh monetisation pathway not solely reliant on subscriptions or enterprise services.
E-commerce integration defines Alibaba’s AI direction
Alibaba’s legacy in retail commerce provides a strategic advantage in applying artificial intelligence to high-volume consumer interactions.
While ByteDance’s Doubao and Tencent’s Yuanbao have captured attention for standalone AI models, Alibaba is targeting daily shopping behaviour as a natural point of AI intervention.
This decision reflects a different approach to consumer AI monetisation in China, where users are typically less willing to pay directly for digital services.
Alibaba’s path focuses on function-first engagement, using AI to power relevant tasks and then deriving revenue indirectly from platform usage.
By embedding Qwen into Taobao, Alibaba is not only enhancing user experience but also gathering high-quality data to improve its models.
The interaction loop between consumer activity and AI response creates a scalable feedback mechanism that can support long-term growth in both commerce and technology verticals.
Global expansion and infrastructure alignment
The Qwen project is not limited to domestic markets.
As per the report, Alibaba plans to develop an international version of the app, expanding its AI footprint beyond China.
This external expansion is being supported internally through a comprehensive infrastructure upgrade.
In September, CEO Eddie Wu outlined plans for Alibaba to invest in both AI services and the hardware needed to sustain them.
The company’s full-stack strategy spans everything from model development to chip-level support, reflecting a vertical integration approach similar to that of American counterparts like Meta and OpenAI.
The rebranded Qwen app is also part of a broader product portfolio that includes the Quark search app, which was updated earlier this year to serve as a general-purpose AI assistant.
Quark will remain available to users but Qwen is being positioned as the flagship tool for mobile AI interaction.
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