Chinese AI heavyweights Alibaba and Moonshot AI are pivoting to revenue-sharing arrangements that let commercial users access their models at low cost upfront, then collect a cut once the profits start flowing.
How the new deals work
Moonshot AI fired the first shot with its Kimi K3 model, released on July 27. The model is available for researchers and small developers at minimal cost. But once a commercial user crosses $20 million in annual revenue, the terms change significantly.
At that threshold, companies must enter separate negotiations with Moonshot. The revenue share could climb as high as 30%, according to the model’s licensing terms.
Alibaba is reportedly following suit with its upcoming Qwen3.8-Max model. The company is expected to roll out a similar revenue-participation framework, targeting large-scale commercial deployments while preserving accessibility for the broader developer community.
