• Meta is reportedly refining a new AI model using Alibaba's Qwen technology, according to people familiar with the matter.
  • Alibaba shares jumped over 4% in US premarket trading on the news, reflecting investor optimism about potential collaboration.
  • The development marks a notable shift in competitive dynamics between the two tech giants in the AI space.

A Surprising Development in AI Rivalry

Meta Platforms Inc. is working on refining a new artificial intelligence model that incorporates technology from Alibaba Group Holding Ltd.'s Qwen family, according to people with knowledge of the development. The news, which emerged during early trading hours, sent Alibaba's US-listed shares soaring more than 4% in premarket activity, though the stock later pared some gains as the session progressed.

Efforts to integrate Qwen's capabilities into Meta's AI infrastructure have apparently been underway for several weeks, though the exact nature of the collaboration remains unclear. One person briefed on the matter described it as "exploratory" rather than a formal partnership, suggesting Meta might be testing Qwen's performance against its own Llama models. When reached for comment, Meta representatives declined to provide specifics, stating only that the company "continually evaluates various technologies to advance our AI research." Alibaba did not immediately respond to requests for comment.

This development comes at a particularly interesting moment in the AI arms race. Just last month, Singapore's national AI program selected Alibaba's Qwen over Meta's Llama for its flagship project, citing Qwen's superior multilingual capabilities and computational efficiency. That decision, announced by Singapore's Infocomm Media Development Authority, highlighted Qwen's growing reputation in international markets. Meanwhile, Alibaba has been aggressively expanding its AI ecosystem, with over 90,000 Qwen-based derivative models developed globally as of February 2025—surpassing Meta's Llama-based derivatives according to open-source community tracking.

Competitive Implications and Market Reaction

The reported collaboration, if confirmed, would represent a significant departure from the companies' previous competitive posturing. Both have been positioning themselves as leaders in open-source AI: Meta with its Llama family and Alibaba with Qwen. Industry observers note that Meta's interest in Qwen technology might reflect specific technical advantages, particularly in areas like multilingual processing or model efficiency. "What we're potentially seeing here is recognition that no single company has all the answers in AI," said one technology analyst who requested anonymity due to client relationships. "Even competitors can find value in each other's approaches."

Market reaction was immediate and pronounced. Alibaba's ADRs climbed as high as $82.45 in premarket trading, up from Tuesday's close of $79.20, before settling around $81.80 as regular trading approached. The surge added approximately $8 billion to Alibaba's market capitalization during the premarket session. Trading volume was notably heavy, with more than 2.5 million shares changing hands in the premarket period—well above the typical volume for that time of day.

Interestingly, this development coincides with both companies expanding into adjacent hardware markets. Alibaba recently launched Qwen-powered Quark AI Glasses, directly competing with Meta's Ray-Ban smart glasses partnership. Meanwhile, Meta continues to invest heavily in its Reality Labs division, though those efforts have focused more on virtual and augmented reality than pure AI model development.

What Comes Next

Without a formal agreement between the companies, it remains uncertain whether this reported collaboration will evolve into something more substantial. People familiar with the discussions suggest several possible outcomes: Meta might license certain Qwen technologies, the companies could collaborate on specific research areas, or Meta might simply be conducting competitive analysis. The timing is particularly noteworthy given recent regulatory scrutiny of both companies in various jurisdictions.

Attempts to reach additional sources within both organizations were unsuccessful late Tuesday and early Wednesday. One former Meta AI researcher, who left the company earlier this year, noted that "cross-pollination between different AI approaches is becoming more common as the field matures." They added, however, that "direct use of a competitor's core technology would be unusual for a company of Meta's scale and capabilities."

As the trading day progresses, investors will be watching for any official statements from either company. The lack of confirmation has left some analysts cautious. "Premarket moves on unconfirmed reports can be volatile," noted a market strategist at a major investment bank. "We'd need to see something concrete from the companies before drawing firm conclusions about long-term implications."

Correction: An earlier version of this article misstated the percentage gain in Alibaba's premarket trading. The stock rose over 4%, not 5%, at its peak.