Alibaba’s new Qwen VLo AI model enables real-time text-to-image editing as the company ramps up efforts to rival global AI leaders and deepen its push into generative technology.

Chinese technology giant Alibaba Group Holding Ltd. (BABA) has reportedly rolled out a fresh update to its Qwen-line of AI tools, unveiling a model capable of generating and transforming images from both text and visuals.

According to a Bloomberg report, Qwen VLo adds progressive image creation, showing users each step of an evolving picture. Expanding on the capabilities of Qwen2.5-VL, Qwen VLo introduces enhanced tools for both image creation and modification. 

Following the news, Alibaba’s stock inched higher by 0.2% in Friday afternoon trade.

Users can input prompts, such as “create an image of an adorable cat,” or upload a photo like one of a cat, and provide instructions, such as “place a hat on the cat.” A key addition is its progressive rendering function, which allows users to observe the visual output as it takes shape step by step.

The company has also introduced its newest suite of Qwen3 AI models, tailored specifically for Apple devices, including iPhones, iPads, MacBooks, and desktop Macs.

While best known for its leadership in online retail, Alibaba has been rapidly advancing its efforts in the field of artificial intelligence. CEO Eddie Wu recently emphasized that the company’s top focus is now on developing artificial general intelligence technology designed to replicate human-level thinking.

Alibaba's cloud division also announced plans to open a second data facility in South Korea, aiming to tap into the growing demand for generative AI technologies. The facility is expected to be up and running by late June.

Alibaba said it plans to allocate a minimum of RMB 380 billion ($53 billion) over the next three years toward strengthening its cloud and artificial intelligence infrastructure. 

This initiative represents a significant step up from the company’s total investment in these areas over the past decade.

The company’s latest offering positions it to rival emerging multimodal AI frameworks, competing with startups like OpenAI and domestic Chinese firms such as DeepSeek. 

Alibaba has been swiftly enhancing its Qwen lineup to support text, image, audio, and video across devices like phones and laptops, according to the report. 

On Stocktwits, retail sentiment around Alibaba remained in ‘bearish’ territory.

BABA's Sentiment Meter and Message Volume as of 1.15 p.m. ET on Jun.27, 2025 | Source: Stocktwits

Alibaba stock has gained over 34% year-to-date and over 57% in the last 12 months.

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