Alibaba Cuts AI Coding Costs

Alibaba Cuts AI Coding Costs

26 February 2026

What happened

Alibaba's cloud unit launched low-cost access to AI coding tools, integrating its open-source Qwen 3.5 model with offerings from Zhipu AI, Moonshot AI, and MiniMax Group Inc.. Users can switch freely between these models. The lite version costs 7.9 yuan (RM4.48) for the first month, then 40 yuan (RM22.70) monthly, while the pro version starts at 39.9 yuan (RM22.64) for the first month, then 200 yuan (RM113.52). Qwen 3.5 supports AI agent tasks, processing text, photo, and up to two-hour video inputs.

Why it matters

Alibaba's low-cost, multi-model AI coding platform intensifies competitive pressure on existing developer tool providers and shifts unit economics for software development. This follows market disruption from Anthropic's coding tools, which impacted cybersecurity and IBM valuations. CTOs and founders can now significantly reduce the cost of integrating advanced AI assistance into their development workflows, accelerating product cycles and potentially lowering talent acquisition costs. Increased accessibility of frontier coding models could democratise advanced software capabilities, impacting market share for proprietary solutions.

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Published on 26 February 2026

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Alibaba Cuts AI Coding Costs