Alibaba Unveils 2.4T-Parameter AI Model, Boosting Shares

August 4, 2026 -- Today’s top stories: Alibaba Unveils 2.4T-Parameter AI Model, Boosting Shares, China’s Factory Growth Loses Steam as Demand Weakens, and EU Gains Sweeping Powers Over Frontier AI Models.

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By CommonWealth Magazine
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2026-08-04

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Alibaba shares rally after unveiling its 'most powerful' AI model as US-China competition heats up

Alibaba has released its latest AI model, Qwen3.8-Max, which boasts 2.4 trillion parameters, making it one of the "most powerful" AI models in the Chinese Tech giant's Qwen family of AI models to date. Parameters refer to the numerical settings that shape how AI processes information and generates responses.

The model also supports a context window of up to 1 million tokens, which means it can understand and work with thousands of pages of information.

Chinese Tech companies are locked in a fierce and fast-moving battle to build more powerful systems without making them prohibitively expensive to run.

Qwen3.8-Max excels at programming, conducting deep research, and handling complex tasks with a high degree of autonomy.

The model is scheduled for release next week, marking the next major move in the intensifying race among China's AI developers that include Moonshot, DeepSeek, and ByteDance Ltd.

The debut comes after Moonshot's Kimi K3 sent ripples through stock markets and Silicon Valley last month as Chinese models showed the capability of quickly catching up with the top models crafted by US rivals OpenAI and Anthropic.

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China Private Manufacturing Gauge Shows Weaker Activity Growth

China's manufacturing activity slowed in July for export-oriented firms, according to a private survey, in line with an official gauge.

The Ratingdog China manufacturing purchasing managers index (PMI) fell to 50.9 from 51.7 in June, according to a statement released on Monday, compared with the median forecast of 52 by economists, above the 50 threshold that indicates improving conditions from the previous month. Official figures released Friday showed factory activity unexpectedly contracted for the first time in five months and construction slumped to the lowest since the start of the pandemic, pointing to a loss of momentum in the economy. Weakness across the manufacturing, services and construction sectors is weighing on China's gross domestic product growth target as domestic demand stays tepid despite the country's recent AI sector boom.

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Anthropic, OpenAI among firms facing new scrutiny under EU AI Act enforcement powers

The European Union (EU) has gained new powers to inspect AI models, restrict EU market access and fine model providers, raising the stakes for US companies such as Anthropic, OpenAI, and Google.

Under the powers that came into effect on Sunday, the Commission, the EU's executive arm, can demand to evaluate models before public release in the region, restrict EU market access, and fine a provider up to €15M or 3% of its annual turnover, whichever is higher.

The new powers could mean further Flashpoints between the US and European Commission, with the two sparring over Europe's push for tech sovereignty and fines on American Tech companies. Recent rapid leaps in AI capability have also brought new tensions between AI labs and the EU.

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