They’re also trying to take an axe to the lead the US has in the field at a time when sovereignty and “owning your platform” are the words of the day. Open source/open weight LLMs can steal the lunch of US competitors even if they aren’t the best of the best.
I think they're probably more concerned about their Chinese competition, considering that despite all that spending, the Qwen app still trails Bytedance's Doubao in terms of monthly active users: https://www.aicpb.com/ai-rankings/products/china-ai-rankings Though Quark in third place is also made by Alibaba, so put together they're almost caught up with Doubao + Jimeng (place 7, also ByteDance).