Alibaba touts new AI model it says rivals DeepSeek, OpenAI, Meta's top offerings

Published On Jan 29, 2025, 12:27 PM

Alibaba has unveiled its new AI model, Qwen 2.5, claiming it competes effectively against top rivals like DeepSeek, OpenAI's GPT-4o, and Meta's Llama-3.1. The announcement was strategically timed, coinciding with the Lunar New Year, suggesting urgency due to the competitive pressure from DeepSeek's recent rise. Alibaba’s model reportedly outperforms others in various benchmarks, heightening the competition in the AI sector. This move underscores Alibaba's efforts to maintain relevance amidst both domestic and international competition in AI technology.

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Given Alibaba's competitive claims and the rising importance of AI technology, investor confidence may be bolstered in the short term. The launch of Qwen 2.5 may positively influence the market perception of Alibaba's capabilities in AI, especially if they can demonstrate tangible performance superiority over their rivals. However, sustained pressure from competitors like DeepSeek and market volatility in the tech sector could pose challenges.

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BEIJING (Reuters) -Chinese tech company Alibaba on Wednesday released a new version of its Qwen 2.5 artificial intelligence model that it claimed surpassed the highly-acclaimed DeepSeek-V3. The unusual timing of the Qwen 2.5-Max's release, on the first day of the Lunar New Year when most Chinese people are off work and with their families, points to the pressure Chinese AI startup DeepSeek's meteoric rise in the past three weeks has placed on not just overseas rivals, but also its domestic competition. "Qwen 2.5-Max outperforms ... almost across the board GPT-4o, DeepSeek-V3 and Llama-3.1-405B," Alibaba's cloud unit said in an announcement posted on its official WeChat account, referring to OpenAI and Meta's most advanced open-source AI models.

A slew of releases in the last week demonstrate how Chinese companies have moved quickly with AI models that compete with OpenAI's ChatGPT.

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