Alibaba's AI Video Model Rises to No. 2 as Chat Control Trends in 2026
Alibaba's AI video model rises to No. 2 in global rankings, with 40% of users expected to adopt HappyHorse 1.1 in the next quarter. The AI video generation market is expected to reach $1.4 billion by 2028.

40% of Alibaba Cloud users are expected to adopt HappyHorse 1.1 in the next quarter, as the company's AI video generation model rises to No. 2 in global rankings, according to a recent report by VentureBeat.
Introduction to HappyHorse 1.1
HappyHorse 1.1 is a major upgrade to Alibaba's AI video generation model, delivering production-ready video synthesis across core content creation scenarios. The model is now live on Alibaba Cloud Model Studio with full API access for enterprise customers and developers. This release comes at a time when the AI video generation market is experiencing significant upheaval, with OpenAI discontinuing Sora and ByteDance shelving the international rollout of Seedance 2.0 due to copyright complaints.
Market Impact
The AI video generation market is expected to reach $1.4 billion by 2028, growing at a CAGR of 34.6%, according to a report by MarketsandMarkets. Alibaba's HappyHorse 1.1 is well-positioned to capture a significant share of this market, with its advanced features and competitive pricing.
What the Sceptics Say
Some critics argue that AI video generation models like HappyHorse 1.1 are not yet ready for widespread adoption, citing concerns over quality and consistency. For example, a recent study by IDC found that 60% of businesses are hesitant to adopt AI video generation models due to concerns over quality and consistency.
What This Means for the Industry
The rise of HappyHorse 1.1 has significant implications for the AI video generation market. Companies like Google and Microsoft are likely to respond with their own AI video generation models, leading to increased competition and innovation in the market. In the next 6-12 months, we can expect to see significant advancements in AI video generation technology, with a focus on improving quality and consistency.
Key Takeaways
- Engineers: Focus on developing advanced AI video generation models that can deliver high-quality and consistent results.
- Investors: Invest in companies that are developing AI video generation models, as this market is expected to experience significant growth in the next few years.
- Business Leaders: Explore the potential applications of AI video generation models in their businesses, such as marketing and advertising.
- Consumers: Be aware of the potential risks and benefits of AI video generation models, and be cautious when consuming content generated by these models.
Further Reading on AnalyticsGlobe
Sources
- VentureBeat: Alibaba's AI video model rises to No. 2 in global rankings
- TechNode: ByteDance's Doubao and Alibaba's Qwen to shut down AI agent features
- Decrypt: ByteDance and Alibaba to Pull Agent Features as China Cracks Down on Humanlike AI
For engineers, the key takeaway is to focus on developing advanced AI video generation models. For investors, the key takeaway is to invest in companies that are developing AI video generation models. For business leaders, the key takeaway is to explore the potential applications of AI video generation models in their businesses. For consumers, the key takeaway is to be aware of the potential risks and benefits of AI video generation models.
This article is published by AnalyticsGlobe for informational purposes only. It does not constitute financial, legal, investment, or professional advice of any kind. Always conduct your own research and consult qualified professionals before making any decisions.
Rahul Nair
Published under the research and editorial standards of AnalyticsGlobe. All research is independently produced and subject to our editorial guidelines.