Alibaba’s New AI Model Outperforms Rivals
Chinese technology giant Alibaba has launched its latest artificial intelligence reasoning model, QwQ-32B, claiming that it surpasses rival models from OpenAI and emerging AI startup DeepSeek. The company stated in an online release that Alibaba’s New AI Model demonstrates “exceptional performance,” outperforming OpenAI-o1-mini and competing closely with DeepSeek-R1, the leading open-source reasoning model. OpenAI-o1-mini was introduced last year as a cost-efficient AI reasoning solution by the American AI powerhouse.
Alibaba emphasized that QwQ-32B marks a “qualitative leap” in mathematical problem-solving, coding, and general capabilities. Despite having significantly fewer parameters—32 billion compared to DeepSeek-R1’s 671 billion— asserts that its Alibaba’s New AI Model remains highly efficient and competitive. The lower parameter count indicates a more compact and cost-effective approach to AI training, an essential factor in the ongoing development of artificial intelligence technologies.
Market Reaction and Industry Context
The announcement had an immediate impact on financial markets, with Alibaba’s shares on the Hong Kong Stock Exchange closing 8% higher on the day. This contributed to the continued rally of the Hang Seng China Enterprises Index, which has surged over 30% since January. The stock market’s positive reaction highlights growing confidence in Chinese AI advancements, particularly as competition in the sector intensifies amid global technology rivalries.
The unveiling of QwQ-32B comes shortly after another AI development in China. A separate company introduced a “general AI agent” called Manus, which, according to promotional materials, is capable of handling complex, multi-step tasks beyond simple chatbot functionalities. The Manus AI agent can execute tasks such as screening resumés and generating real-world outputs like property investment recommendations. Industry analysts note that the increasing pace of AI innovation in China is a sign of the sector’s rapid expansion and competitiveness on a global scale.
Alibaba’s AI Strategy and Investment Plans
Alibaba has been making significant strides in artificial intelligence. The company initially introduced its ChatGPT-equivalent service, Tongyi Qianwen, in 2023, following the release of OpenAI’s groundbreaking reasoning model. Earlier this year, Alibaba also unveiled Qwen 2.5 Max, Alibaba’s New AI Model it claimed outperformed DeepSeek’s widely praised V3 model. These developments position Alibaba as a key player in China’s AI landscape, reinforcing its commitment to AI research and development.
In line with its ambitions, Alibaba announced plans to invest at least 380 billion yuan ($52.4 billion) in AI and cloud computing infrastructure over the next three years. The company highlighted that this investment surpasses its total spending in these areas over the past decade. Meanwhile, Chinese policymakers have also reaffirmed their commitment to supporting high-tech industries, including artificial intelligence, quantum technology, and humanoid robotics, further signaling the strategic importance of AI in the country’s economic and technological future.
