Alibaba Releases Its Own AI Model, Claiming it Rivals DeepSeek-V3

Alibaba’s Latest AI Model Release Shakes Up the Industry

Chinese tech giant Alibaba has unveiled the latest iteration of its Qwen 2.5 AI model, making a bold claim that it outperforms DeepSeek. The announcement, made on the first day of the Lunar New Year, caught many by surprise, as major product launches on a holiday are uncommon in China.

The decision to roll out Qwen 2.5 during a time when people are typically at home celebrating has sparked speculation. Some analysts believe it reflects a sense of urgency from Alibaba to keep pace with DeepSeek, while others suggest the timing was a strategic move to maximize public attention during the holiday.

In a statement posted on its official WeChat account, Alibaba’s cloud division asserted that “Qwen 2.5-Max surpasses GPT-4o, DeepSeek-V3, and Llama-3.1-405B across multiple benchmarks.”

Rivalry Heats Up in the AI Space

This development follows a series of major AI advancements in China. On January 10, DeepSeek introduced an AI assistant powered by its DeepSeek-V3 model. Just days later, on January 20, the company launched its R1 model, making waves in both Silicon Valley and financial markets—notably causing a dip in U.S. tech stocks, including Nvidia.

DeepSeek’s ability to build a competitive AI model with fewer resources and lower costs compared to leading Western AI firms has raised concerns among investors. The success of this relatively new player has even prompted questions about the massive spending strategies of U.S. tech companies in AI development.

The Domino Effect in China’s AI Race

DeepSeek’s rapid progress has intensified competition in China’s AI landscape. Just two days after the launch of DeepSeek-R1, ByteDance, the parent company of TikTok, introduced an enhanced version of its AI model. According to the company, the updated model outperforms OpenAI’s o1 in tests assessing AI comprehension and instruction-following abilities.

With the AI arms race accelerating, tech giants are under increasing pressure to push boundaries and refine their models at a breakneck pace. As Alibaba and DeepSeek continue to push innovation, the competition in China’s AI sector is only set to intensify.

Shaun

Founder

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Shaun

Founder, Analyst

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