Chinese tech giant Alibaba has unveiled a new version of its artificial intelligence model, Qwen 2.5, asserting that it outperforms the widely acclaimed DeepSeek-V3.

The sudden release, which came on the first day of the Lunar New Year—a time when much of China is on holiday—signals the growing competitive pressure in the AI sector, particularly following the meteoric rise of Chinese AI startup DeepSeek.

A rapid response to DeepSeek’s rise

Alibaba’s cloud division announced on its official WeChat account, stating, “Qwen 2.5-Max outperforms almost across the board GPT-4o, DeepSeek-V3, and Llama-3.1-405B.” The company’s claim places its latest model ahead of OpenAI’s GPT-4o and Meta’s most advanced open-source AI model.

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The AI industry has been in flux since DeepSeek launched its AI assistant on January 10, powered by the DeepSeek-V3 model. Just ten days later, on January 20, DeepSeek released the R1 model—a low-cost, high-performance AI system that disrupted the market and intensified competition among global AI developers.

AI rivalry heats up in China

Alibaba’s move is part of a broader industry response to DeepSeek’s rapid advancements. The startup’s progress has not only unsettled domestic competitors but also posed a challenge to global AI giants.

Adding to the industry shake-up, just two days after DeepSeek unveiled its R1 model, ByteDance—the parent company of TikTok—released an upgraded version of its flagship AI model. ByteDance claimed its model had surpassed OpenAI’s o1 in AIME, a benchmark test assessing AI’s ability to understand and respond to complex instructions.

As China’s AI race accelerates, Alibaba’s latest release underscores the fierce competition among tech giants vying for dominance in the artificial intelligence landscape. With DeepSeek disrupting the market and Alibaba aggressively responding, the AI sector is set for further upheaval in the months ahead.