Alibaba Cloud has unveiled HappyHorse 1.1, the latest version of its AI video generation model, which has climbed to second place in global AI video rankings as competition in the sector continues to shrink.

The upgraded model is now available through Alibaba Cloud Model Studio, offering API access for developers and businesses. To encourage adoption, Alibaba is providing a 40% launch discount for a limited period.

Independent benchmark Artificial Analysis Video Arena ranks HappyHorse as the world’s second-best AI video model based on blind human evaluations. The model performs strongly in both text-to-video and image-to-video tasks, placing ahead of several well-known rivals.

HappyHorse 1.1 focuses on features designed for professional content creation. It can generate more consistent characters using multiple reference images, produce smoother movement, improve facial realism, deliver more accurate lip-syncing, and better follow detailed user instructions.

Alibaba said the model is built to simplify video production by generating synchronized video and audio together, eliminating the need for separate audio processing in many workflows.

The launch comes as the competitive landscape changes rapidly. OpenAI has ended support for Sora, while ByteDance has suspended the global rollout of Seedance 2.0, leaving fewer major AI video platforms available for enterprise customers.

Alibaba is also expanding its cloud infrastructure to support growing AI demand, recently opening new cloud facilities in France and Japan as part of its international expansion.

With HappyHorse now ranked second globally and backed by Alibaba’s cloud ecosystem, the company is strengthening its challenge to established AI video leaders and targeting businesses seeking enterprise-ready video generation tools.