Alibaba releases AI model surpassing DeepSeek-V3

January 29, 2025 (MLN): 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 has placed on its rivals.

This pressure extends not just to overseas competitors, but also to its domestic competition, as Reuters reported.

"Qwen 2.5-Max outperforms almost across the board GPT-4, DeepSeek-V3, and Llama-3.1-405B," Alibaba's cloud unit said in an announcement posted on its official WeChat account.

The statement referred 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, and the Jan 20 release of its R1 model, have shocked Silicon Valley.

These releases caused tech shares to plunge, with the Chinese startup's purportedly low development and usage costs prompting investors to question the huge spending plans of 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.

The company claimed that the updated model 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 rivaled OpenAI's o1 on several performance benchmarks.

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