Alibaba Group has rolled out an upgraded version of its artificial intelligence system, Qwen VLo, strengthening its position in the competitive landscape of AI-driven visual tools. The new model, part of the company’s Qwen product line, is designed to generate and edit images using text or visual prompts.
Announced in a company blog post, the enhanced Qwen VLo follows the earlier Qwen2.5-VL and introduces expanded multimodal abilities. The model now supports text-to-image and image-to-image creation, allowing users to either describe visuals or modify uploaded images using written instructions. One of its key features is “progressive generation,” which enables users to view the step-by-step rendering of an image.
For example, users can input a command like “Generate a picture of a cute cat” or upload an image and prompt edits such as “Add a cap on the cat’s head,” with the model handling the visual modifications accordingly.
The move is part of Alibaba’s broader pivot towards artificial intelligence. The Hangzhou-based firm, better known globally for its online retail business, has been investing heavily in AI development through its Qwen brand. In February, the company’s CEO, Eddie Wu, identified artificial general intelligence, AI with human-like reasoning, as a central goal.
With Qwen VLo, Alibaba is positioning itself against both international and domestic players in the AI sector. It faces increasing competition from Chinese rivals such as DeepSeek, which recently made headlines by releasing a powerful model reportedly developed with minimal financial outlay.
In response to these developments, Alibaba has continued to expand the Qwen suite to include models capable of processing text, images, audio, and video, with an emphasis on efficiency and compatibility with mobile devices. Earlier this year, the company also integrated its AI systems into an updated version of its Quark assistant app.
China’s AI sector is heating up as companies aggressively compete for market share. Cloud service providers, including Alibaba and Tencent, have recently reduced their prices to attract users, with DeepSeek emerging as a significant factor in this intensifying price war. Several AI startups in China have also secured substantial funding at unicorn-level valuations, adding to the competitive landscape.