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Rednote Joins Wave of Chinese Firms Releasing Open-Source AI Models

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Chinese social media platform Rednote (Xiaohongshu) has released an open-source large language model named dots.llm1, joining a growing number of Chinese tech companies making AI models publicly available. This open-source move contrasts with many U.S. tech giants like OpenAI and Google, which keep their most advanced AI models proprietary, although some American firms such as Meta have also embraced open-source AI.

The release aims to showcase China’s technological prowess, foster developer communities, and extend global influence amid U.S. export restrictions targeting China’s advanced semiconductor industry.

According to Rednote’s technical paper published last Friday on Hugging Face, dots.llm1 performs comparably on coding tasks to Alibaba’s Qwen 2.5 model but is less advanced than models like DeepSeek-V3.

Rednote, known for its Instagram-style platform where users share photos, videos, and text, ramped up AI development after OpenAI’s ChatGPT debut in late 2022. Recently, it launched Diandian, an AI-powered search app for its main platform.

Other Chinese companies following this open-source path include Alibaba, which introduced the upgraded Qwen 3 model in April, and startup DeepSeek, whose low-cost R1 model has made waves globally for its competitive performance despite lower development costs.

Alibaba Partners with RedNote to Boost Instant Retail Amid Fierce China E-Commerce Battle

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Alibaba Group (9988.HK) has entered a strategic partnership with lifestyle content platform RedNote (Xiaohongshu), allowing users to directly shop from RedNote posts via clickable links to Alibaba’s Taobao platform, the companies announced this week. This integration formalizes app-to-app commerce, creating a smoother path from content discovery to purchase and reflecting Alibaba’s aggressive push in the “instant retail” space.

“By combining Taobao and Tmall’s commerce expertise with Xiaohongshu’s strength in lifestyle content, we’re helping brands reach consumers more effectively,” said Liu Bo, Alibaba VP and Tmall president.

Context: Rising E-Commerce Rivalry and Instant Retail Race

The move comes amid intensifying competition among China’s tech giants as consumer confidence remains weak, prompting heavy discounting and platform subsidies.
Alibaba and rivals like JD.com (9618.HK) and Meituan (3690.HK) are increasingly focused on instant retail—offering one-hour delivery of everything from food to fashion and electronics.

  • Meituan continues to dominate China’s instant delivery market

  • Alibaba’s Ele.me supports fast fulfillment for Taobao purchases via a new “instant commerce” section

  • JD.com pledged 10 billion yuan ($1.38B) for its own instant retail strategy in 2024

Strategic Impact of the RedNote Tie-Up

  • Enables shoppable lifestyle content, turning Xiaohongshu posts into direct retail channels

  • Pilot programme will prioritize fast-moving consumer goods and healthcare products—two hot-growth segments in instant retail

  • Supports Alibaba’s ambition to blend social media discovery with seamless, fast commerce

In just five days this month, Alibaba reported completing 10 million instant retail orders, showcasing the scale and momentum behind its rapid delivery model.

This partnership signals Alibaba’s broader aim to tighten ecosystem integration and tap into RedNote’s social commerce influence, especially among China’s younger, trend-focused consumers.

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Over half a million new users have flocked to China’s social media app RedNote, also known as Xiaohongshu, in just a few days, as Americans seek alternatives to TikTok ahead of a potential U.S. ban. The app’s popularity skyrocketed after American social media users began searching for a platform to move to, with RedNote experiencing a surge in downloads in the U.S. and climbing to the second most-popular free app on the Apple App Store.

According to sources, the app gained more than 700,000 new users in just two days. User growth in the U.S. spiked by over 200% year-over-year and 194% from the previous week, based on estimates from app data firm Sensor Tower. The app, which allows users to curate photos, videos, and text, was initially designed for Chinese users but has expanded its reach internationally.

RedNote was caught by surprise by the rapid influx of English-speaking users and has begun scrambling to implement moderation strategies and translation tools to manage the new demographic. Unlike many Chinese apps, RedNote maintains a single version of its app, not differentiating between its Chinese and international user bases, which poses challenges for content moderation.

The spike in users comes as TikTok faces a looming January 19 deadline to either sell or face a ban in the U.S. due to national security concerns. RedNote’s surge is seen as a potential path for the platform to gain global popularity, similar to TikTok’s success. The app’s recent valuation stands at $17 billion, and it has become a popular tool in China for discovering travel tips, anti-aging products, and more.

Some American users view the shift to RedNote as a response to government overreach, with many joining the platform to explore alternatives to TikTok. Despite the excitement, others are skeptical about rebuilding their TikTok followings on a new platform.