Alibaba's new AI model to rival that of DeepSeek and OpenAI
But can the tech giant offer a compelling alternative that balances cost and performance?
The AI race in China just got even more intense.
DeepSeek has been making waves since launching its V3 model on January 10, followed by the R1 model on January 20—both drawing attention for their strong performance and low-cost pricing. The rapid rise of this 20-month-old startup has not only rattled Silicon Valley but also seems to be putting pressure on domestic competitors.
Just two days after R1’s release, ByteDance, TikTok's parent company, responded with an update to its own AI, Doubao-1.5-pro, claiming it outperforms OpenAI’s o1.
Now, Alibaba has entered the fray with its latest AI model, Qwen 2.5 Max, introduced on the first day of the Lunar New Year, while many were off celebrating. The timing seems intentional, signalling that the company is likely feeling the impact of DeepSeek’s rapid ascent.
Oyinebiladou Omemu
Alibaba’s cloud unit claims that Qwen 2.5 Max delivers stronger results across multiple benchmarks, surpassing DeepSeek-V3, OpenAI’s GPT-4o, and Meta’s Llama 3.1-405B. However, details on pricing and accessibility are still unclear.
Given DeepSeek’s aggressive strategy—its earlier V2 model led to drastic price cuts across the industry, with Alibaba reportedly slashing its older model prices by up to 97%—the real question is whether Alibaba can offer a compelling alternative that balances cost and performance.
With Baidu, Tencent, and ByteDance all making moves to stay competitive, China’s AI race is evolving quickly. While DeepSeek’s momentum could continue reshaping the market, Alibaba’s Qwen 2.5 Max may signal that larger tech firms aren’t backing down. If the model delivers on its claims, it might add another layer of competition to an already high-stakes battle.
