Alibaba, the tech giant from China, has introduced a new version of its AI model, boldly claiming that it outshines OpenAI’s ChatGPT and the swiftly emerging DeepSeek.
“Qwen 2.5-Max exceeds … nearly all aspects of GPT-4o, DeepSeek-V3, and Llama-3.1-405B,” declared Alibaba’s cloud sector, according to [Reuters](https://ca.finance.yahoo.com/news/alibaba-releases-ai-model-claims-051704499.html). These models signify the forefront of AI progress from OpenAI, DeepSeek, and Meta, respectively.
Information regarding Alibaba’s latest offering is limited, but its release timing is significant. The AI industry is presently experiencing shifts, with DeepSeek, a China-based AI startup, gaining considerable momentum. DeepSeek’s model is said to be as competent as, if not superior to, its rivals while offering greater cost-effectiveness and lower computational requirements.
**SEE ALSO:**
[DeepSeek AI: What you need to know about the ChatGPT rival](https://mashable.com/article/deepseek-ai-chatgpt-rival-what-to-know)
Despite [privacy issues](https://mashable.com/article/deepseek-ai-privacy-policy-keystroke-data-chinese-servers), DeepSeek has rapidly [ascended to the forefront](https://mashable.com/article/deepseek-chatgpt-apple-app-store) of Apple’s app store rankings. In reaction to DeepSeek’s surging popularity, OpenAI has recently rolled out a new GPT tool aimed at government use, a strategy that coincided with [a notable decline in technology stocks](https://mashable.com/article/deepseek-ai-stocks-market-impact) linked to DeepSeek’s impact on the market. It seems that Alibaba is also feeling the heat of competition.
As noted by [Reuters](https://ca.finance.yahoo.com/news/alibaba-releases-ai-model-claims-051704499.html), the launch of Qwen 2.5-Max coinciding with the Lunar New Year—when many in China are away from their jobs, celebrating with family—highlights the urgency driven by DeepSeek’s swift rise. The startup’s rapid progress has unsettled not just global rivals but also domestic competitors like Alibaba.
With DeepSeek shaking up the AI sector, the industry seems to be in a state of excitement. Anticipate more news on this front soon.