Alibaba

IDC’s “AI Search Product Assessment, 2025” evaluates general-purpose search products based on user data, product performance, and technological capabilities. Alibaba’s Quark application excelled in product performance, achieving a score of 4.8 out of 5. This performance surpassed Baidu, positioning Quark as a leader in this key dimension according to the IDC report. The assessment underscores Quark’s strong capabilities.

At WAIC 2025, Alibaba’s Quark showcased its “AI Super App” and a range of AI features, including AI Writing, Image Generation, and a Deep Research tool capable of generating complex reports. The Quark AI Glasses, integrating the Tongyi Qianwen model, also drew significant attention. Notably, Quark’s AI Camera and “Chief Physician-Level AI Doctor” integrated into its AI search proved popular, highlighting Quark’s versatility in addressing diverse user needs from work to healthcare.

China’s on-demand delivery market is experiencing intense competition as Meituan, Fliggy (Alibaba), and JD.com engage in a subsidy war. This weekend saw a surge in promotional offers, benefiting consumers seeking immediate delivery services. The players are vying for market share by attracting users with heavily discounted prices and incentives. The long-term impact of this subsidy battle on the on-demand delivery landscape remains to be seen.

China’s food delivery platforms, Meituan and Alibaba’s Taobao, launched aggressive subsidies for coffee and bubble tea, creating online buzz with discounted and lottery-based free offers. This fueled intense demand, significantly boosting order volumes and delivery rider earnings (some exceeding $96/day), though raising concerns about rider welfare. Analysts see the subsidies as a strategic “online-offline fusion” push during peak summer, aiming to drive tens of billions in consumer spending across urban economies via estimated $7 billion in platform incentives.

Alibaba and Meituan ignited a fierce food delivery price war with deep discounts, driving massive user traffic and causing temporary outages for Meituan. Goldman Sachs projects this competition to peak in September, potentially leading to significant losses for major players but a strategic gain in user engagement for cross-selling. Pinduoduo is positioned as an opportunistic winner by abstaining from the promotion war.

Wang Shuai, former Alibaba PR executive and honorary partner, is rumored to be returning as a consultant, potentially advising on Taobao Flash Sales. His social media activity and comments suggest a renewed engagement with the e-commerce giant he’s been associated with for twenty years, where he also serves as Vice Chairman of Alibaba Public Welfare.

Research suggesting Huawei’s Pangu large model shares significant parameter similarity with Alibaba’s Qwen, sparking plagiarism allegations. Huawei’s Pangu team denies this, citing different training hardware and adherence to open-source licenses for shared components. While some code within Pangu bears Qwen’s copyright, it’s attributed to proper utilization of open-source licenses rather than outright plagiarism. The original research report has been removed pending peer review.

Xiaohongshu has officially denied rumors of an acquisition by Alibaba, labeling the speculation as “groundless.” This isn’t the first time such rumors have surfaced, with similar claims made in 2019. Xiaohongshu, founded in 2013, has seen its valuation reportedly surge to $26 billion, a significant increase from its previous $17 billion valuation at the end of 2023. Alibaba has not yet commented on the reports.

Alibaba Group CEO announced Ele.me and Fliggy’s immediate integration into the China Digital Commerce Group, aiming to become a comprehensive consumer platform. While maintaining operational independence, they will align with the Group’s goals. This strategic move leverages the success of Taobao Flash Sale, which has seen significant growth and high fulfillment rates, especially during the 618 shopping festival. The consolidation is expected to enhance Alibaba’s consumer services and potentially reshape the retail landscape.

Alibaba is undergoing a significant strategic shift towards AI, spurred by internal reflections on past missteps and the rise of competitors. Executives, including Joe Tsai, admitted to overexpansion and are now laser-focused on AI and cloud infrastructure to regain dominance. This triggered rapid development of the Qwen series, now a top-ranked open-source model, and a massive investment of over 380 billion yuan in AI infrastructure. The company aims to democratize AI through open-sourcing Qwen.