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Alibaba releases AI model it claims surpasses DeepSeek-V3

Published by Global Banking & Finance Review

Posted on January 29, 2025

2 min read

· Last updated: January 27, 2026

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Alibaba's Qwen 2.5-Max AI model release announcement amid AI competition - Global Banking & Finance Review
The image highlights Alibaba's announcement of the Qwen 2.5-Max AI model, claiming it surpasses DeepSeek-V3. This release illustrates the intensified competition in the AI sector, particularly in response to recent innovations from Chinese startup DeepSeek.
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By Eduardo Baptista BEIJING (Reuters) - Chinese tech company Alibaba on Wednesday released a new version of its Qwen 2.5 artificial intelligence model that it claimed surpassed the highly-acclaimed

Alibaba Unveils Qwen 2.5 AI Model, Claims Superiority Over DeepSeek-V3

By Eduardo Baptista

BEIJING (Reuters) - Chinese tech company Alibaba on Wednesday released a new version of its Qwen 2.5 artificial intelligence model that it claimed surpassed the highly-acclaimed DeepSeek-V3.

The unusual timing of the Qwen 2.5-Max's release, on the first day of the Lunar New Year when most Chinese people are off work and with their families, points to the pressure Chinese AI startup DeepSeek's meteoric rise in the past three weeks has placed on not just overseas rivals, but also its domestic competition.

"Qwen 2.5-Max outperforms ... almost across the board GPT-4o, DeepSeek-V3 and Llama-3.1-405B," Alibaba's cloud unit said in an announcement posted on its official WeChat account, referring to OpenAI and Meta's most advanced open-source AI models.

The Jan. 10 release of DeepSeek's AI assistant, powered by the DeepSeek-V3 model, as well as the Jan. 20 release of its R1 model, has shocked Silicon Valley and caused tech shares to plunge, with the Chinese startup's purportedly low development and usage costs prompting investors to question huge spending plans by leading AI firms in the United States.

But DeepSeek's success has also led to a scramble among its domestic competitors to upgrade their own AI models.

Two days after the release of DeepSeek-R1, TikTok owner ByteDance released an update to its flagship AI model, which it claimed outperformed Microsoft-backed OpenAI's o1 in AIME, a benchmark test that measures how well AI models understand and respond to complex instructions.

This echoed DeepSeek's claim that its R1 model rivalled OpenAI's o1 on several performance benchmarks.

(Reporting by Eduardo Baptista; Editing by Christian Schmollinger)

Key Takeaways

  • Alibaba releases Qwen 2.5 AI model.
  • Qwen 2.5 claims to outperform DeepSeek-V3.
  • Release coincides with Lunar New Year.
  • DeepSeek's rise pressures competitors.
  • ByteDance also updates its AI model.

Frequently Asked Questions

What new AI model did Alibaba release?
Alibaba released the Qwen 2.5 artificial intelligence model, claiming it surpasses DeepSeek-V3.
When was the Qwen 2.5-Max model released?
The Qwen 2.5-Max model was released on the first day of the Lunar New Year.
How does Qwen 2.5-Max compare to other AI models?
Alibaba's cloud unit stated that Qwen 2.5-Max outperforms models like GPT-4o, DeepSeek-V3, and Llama-3.1-405B.
What impact did DeepSeek's AI assistant release have?
The release of DeepSeek's AI assistant shocked Silicon Valley and caused tech shares to plunge.
What actions did competitors take following DeepSeek's success?
DeepSeek's success prompted domestic competitors, including ByteDance, to upgrade their AI models.

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