Alibaba has launched a new artificial intelligence model, claiming it outperforms DeepSeek-V3, a recent release that has shaken the global AI landscape.
The Chinese tech giant announced its Qwen 2.5 model on Wednesday, an unusual move as it coincided with the Lunar New Year, a time when most businesses in China pause operations. The timing suggests growing pressure from DeepSeek, which has disrupted both domestic and international AI markets.
Alibaba said its latest model surpasses DeepSeek, OpenAI, and Meta’s most advanced open-source AI models in performance.
The launch comes amid a heated AI race, particularly after DeepSeek’s AI assistant debuted this month, causing shockwaves in Silicon Valley and triggering a decline in tech stock values. The startup’s lower development and usage costs have led investors to question the high spending strategies of U.S. AI firms.
DeepSeek’s growing influence has intensified competition in China. Its earlier model, released in May, triggered a pricing war among Chinese AI firms, prompting Alibaba’s cloud unit to slash AI model prices by up to 97%.
Other major Chinese firms, including Baidu and Tencent, have also responded with competitive pricing and upgraded AI models.