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Alibaba Launches New AI Model, Claims it Surpasses DeepSeek-V3 in Performance

Alibaba's new Qwen 2.5 AI model claims to surpass DeepSeek-V3, released amid competition from ByteDance's AI advancements. DeepSeek's recent models triggered a price war in China’s AI sector, intensifying industry rivalry.

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Alibaba Launches New AI Model, Claims it Surpasses DeepSeek-V3 in Performance

On Wednesday, Chinese tech juggernaut Alibaba published the latest Qwen 2.5 variant of its AI model, that it said overtakes the reputable DeepSeek-V3, according to Reuters.

The release came at a time when the Lunar New Year had fallen on the first day of holiday season for most Chinese people, underlining pressure felt by Alibaba following the quick ascendancy of DeepSeek in the field. The new contender has in recent times surpassed both its international and domestic peers in AI technology.

Alibaba’s cloud division declares that “Qwen 2.5-Max outshines almost everything GPT-4, DeepSeek-V3, and Llama-3.1-405B,” referring to OpenAI and Meta’s two most advanced open-source AI models released so far.

DeepSeek released its DeepSeek-V3-backed AI assistant very early in the first month, followed by that of the model R1 a week later-the 20th of January low-cost, very high-performance model.

Just two days after DeepSeek’s R1 model launch, ByteDance, the parent company of TikTok, unveiled an update to its AI model, claiming it surpassed Microsoft-backed OpenAI’s o1 in the AIME benchmark test, which measures AI models’ ability to understand and respond to complex instructions.

In May 2024, with the launch of its DeepSeek-V2 model by DeepSeek, an all-out China price war kicked off, reducing prices for numerous models offered through Alibaba’s cloud unit by up to 97%. Still, in an interview Waves, a media outlet in Chinese, Liang Wenfeng, founder at DeepSeek described that “we didn’t care about the price war,” but based on following Artificial General Intelligence (AGI).