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Last week, Chinese company DeepSeek shocked the world with its R1 language model, which beat OpenAI O1 in several benchmarks. A few days later, Alibaba came out with its own model -- Qwen 2.5 Max -- which purported to best DeepSeek itself. Several reviewers have made comments corroborating Alibaba's claims.

Chinese AI lab DeepSeek sent a shockwave through the tech sector this week after releasing its R1 large language model (LLM) that was faster, more efficient, and cheaper to train and run than existing models, even though it used underpowered A800 chips from Nvidia (NASDAQ:NVDA).

Alibaba Group Holding Ltd (NYSE: BABA) is inching up this morning as investors continue to hail its launch of a new AI model that it claims is more powerful than OpenAI as well as DeepSeek. The artificial intelligence assistant the company is calling Qwen 2.5-Max outperforms every renowned large language model in nearly every area.

Alibaba Group Holding Limited's new AI model Qwen 2.5-VL claims to outperform ChatGPT, Llama, and DeepSeek, potentially boosting Alibaba Cloud's growth prospects and market share. Alibaba officially entered the AI arms race with the release of Qwen 2.5-VL and is set to deploy its AI model in its Cloud operations. The Chinese e-Commerce giant's Cloud business, which generated $4.2B in revenue in...

Fed Chair Jerome Powell plays it as straight as possible while President Trump and threats to the AI rally abound.

Shares of Alibaba Group Holding (BABA 1.96%) were flying higher on Wednesday. The company's stock gained 1.9% as of 1:50 p.m.

Big Tech sold off on Monday after reports that Chinese startup DeepSeek created an artificial intelligence (AI) model that outperformed OpenAI's at a substantially lower cost.

Alibaba says the latest version of its Qwen 2.5 artificial intelligence model can take on fellow Chinese firm DeepSeek's V3 as well as the top models from U.S. rivals OpenAI and Meta.