Scan Life Posted on 2025-01-29 19:55:00

AI Show! Alibaba claims its new model outperforms DeepSeek and ChatGPT

From Edel Strazimiri

AI Show! Alibaba claims its new model outperforms DeepSeek and ChatGPT

The announcement comes after Chinese AI startup DeepSeek shocked markets on Monday and sparked a tech-led sell-off in the US and Europe after the company claimed its AI is more cost-effective and performs better than leading US models.

Alibaba now claims that its new AI model, Qwen 2.5-Max, an open source, is even more impressive than DeepSeek's, putting pressure on its domestic and overseas rivals.

The e-commerce giant said that Qwen 2.5-Max is also able to outperform OpenAI's GPT-4 and Meta's (META) Llama-3.1-405B.

Alibaba's share price was up 1.2% at the time of writing, while its shares are up 25% in six months. Investors will be watching how the quest for AI dominance plays out as competition heats up among the tech titans.

Risk of a renewed US-China trade war

As reported on Tuesday, following the DeepSeek update, US President Donald Trump said the breakthrough was “a wake-up call” for American tech companies and the need for the US to “focus hard on competitiveness.” He also expressed confidence that American tech companies will maintain dominance in the AI ​​industry.

Meanwhile, Trump's return has revived concerns about a US-China trade war No. 2. "For now, it's safe to say that today has sparked a rethink of 'AI trade' and the risks of a US-China trade war," Kyle Rodd, a senior market analyst at Compital.com, wrote in a note to clients.

So far, President Trump has not imposed the 60% tariff on Chinese imports he promised during his campaign. Instead, his administration has launched an assessment, with findings expected by April 1.

Poll

Poll

Live TV

Latest news
All news

Most visited