Chinese tech giant Alibaba has launched Qwen 2.5, a new artificial intelligence model that it claims outperforms DeepSeek-V3. The announcement was made on Wednesday, the first day of the Lunar New Year, when most of China is on holiday.
The sudden release signals intense competition in the AI industry. DeepSeek, a rising Chinese AI startup, has shaken the market. It has surpassed both domestic and global rivals, creating pressure for established players like Alibaba.
Alibaba Claims Victory Over Top AI Models
Alibaba’s cloud unit posted an update on WeChat, stating that Qwen 2.5-Max outperforms OpenAI’s GPT-4o, Meta’s Llama-3.1-405B, and DeepSeek-V3. These models are among the most advanced AI systems available. Alibaba’s claim, if true, could mark a major shift in AI dominance.
DeepSeek made waves earlier this year with rapid releases. On January 10, it launched an AI assistant powered by the DeepSeek-V3 model. Then, on January 20, it introduced DeepSeek-R1, a low-cost, high-performance AI model. This move disrupted the industry, forcing competitors to respond.
ByteDance Enters the AI Race
ByteDance, the parent company of TikTok, also reacted quickly. Just two days after DeepSeek-R1’s launch, it introduced an upgraded AI model. The company claimed its AI outperformed OpenAI’s GPT-4o in AIME, a benchmark test that measures AI comprehension and responsiveness.
The rapid advancements in Chinese AI highlight the country’s growing influence in the global AI race. Companies are not only competing on performance but also on cost, making AI more accessible.
AI Price War in China
DeepSeek’s earlier release of its V2 model in May 2024 triggered a price war. In response, Alibaba’s cloud unit slashed prices on some AI models by up to 97%. Other companies followed suit, making AI technology cheaper in China.
However, DeepSeek’s founder, Liang Wenfeng, dismissed concerns about pricing. In an interview with Chinese media outlet Waves in July, he stated that DeepSeek was focused on developing artificial general intelligence (AGI) rather than competing on cost.
The Battle for AI Supremacy
Alibaba’s release of Qwen 2.5 suggests that it is unwilling to concede ground to DeepSeek. The AI race in China is intensifying, with major players pushing for dominance. The competition is not just about technology but also about market control.
With major Chinese firms aggressively developing AI, the industry is changing rapidly. The coming months will reveal whether Qwen 2.5 can live up to Alibaba’s claims and whether DeepSeek will respond with another breakthrough.
