DeepSeek traction alerts local competitors as Alibaba drops updated AI model

Chinese AI startup DeepSeek is garnering global fame due to its cost, efficiency and cutting edge technology

DeepSeek traction alerts local competitors, Alibaba drops updated AI model
DeepSeek traction alerts local competitors, Alibaba drops updated AI model

Chinese tech company Alibaba has released a new version of its Qwen 2.5 artificial intelligence model amid DeepSeek popularity worldwide.

On Wednesday, January 29, the tech-giant claimed that its latest update surpasses the highly-popular and talked about DeepSeek-V3, as reported by Reuters.

Qwen 2.5 Max was released on the first day of the Lunar new year, when most people are taking a break from work and social media altogether.

The unusual timing of the launch points to the pressure DeepSeek is putting not just on the international rivals but also its domestic competitors.

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

DeepSeek’s AI assistant release on January 10 and its model, R1 drop on January 20, has taken the Silicon Valley by shock, causing tech stocks to drop.

Along with that, the Chinese startup is using a fraction of funds to its counterpart in US, which promoted the investors to question the huge spending of AI firms in United States.

Following the DeepSeek success, ByteDance, TikTok’s owner also updated its flagship AI model, which it claimed topped OpenAI’s o1 in AIME.