Alibaba Releases AI Model
January 29, 2025

Alibaba Releases AI Model It Says Surpasses DeepSeek

By Ovais Mirza

A New AI Battle Begins: Alibaba vs. DeepSeek

In a surprising move on the first day of the Lunar New Year, Alibaba has unveiled its latest AI model, Qwen 2.5-Max, which it claims outperforms some of the most advanced AI models in the world, including DeepSeek-V3, GPT-4o, and Llama-3.1-405B. This announcement is making waves in the AI industry, as DeepSeek has been the rising star in artificial intelligence over the past few weeks.

But what does this mean for the AI landscape? And why did Alibaba choose such an unusual time to release its new model? Let’s dive in!


Alibaba’s Bold Move: What is Qwen 2.5-Max?

Alibaba’s cloud computing division claims that Qwen 2.5-Max sets new standards in AI performance. The model reportedly surpasses its competitors in various AI benchmarks, making it one of the most powerful AI systems available today.

AI ModelCompanyPerformance Claims
Qwen 2.5-MaxAlibabaSurpasses DeepSeek-V3, GPT-4o, and Llama-3.1-405B
DeepSeek-V3DeepSeekRivaling OpenAI’s models with lower costs
GPT-4oOpenAIIndustry-leading but facing competition
Llama-3.1-405BMetaStrong open-source model

Why the Lunar New Year Launch?

The timing of the release is intriguing. Most Chinese companies slow down during the Lunar New Year, making it an odd moment to make such a major announcement. However, this suggests Alibaba is feeling the pressure from DeepSeek’s rapid rise and wanted to reclaim its position as a leader in AI development.

DeepSeek, a relatively new player, has been dominating discussions in the AI industry, and Alibaba may have chosen this strategic moment to counter the hype.


DeepSeek’s Disruptive Rise in AI

DeepSeek has been turning heads since the launch of its DeepSeek-V3 AI model on January 10, 2025. Just ten days later, on January 20, it released the R1 model, which shocked Silicon Valley.

Why is DeepSeek Gaining Attention?

  • Low Cost: DeepSeek’s AI models are significantly cheaper than competitors, making them attractive for businesses and developers.
  • High Performance: The models rival some of the best in the industry, including OpenAI’s GPT models.
  • Research-Driven Approach: Unlike big tech companies, DeepSeek operates more like a research lab, focusing on innovation over profit.

DeepSeek’s founder, Liang Wenfeng, has emphasized that the company is not focused on price wars but on achieving Artificial General Intelligence (AGI)—a level of AI that can outperform humans in most economically valuable tasks.

Price Wars in the Chinese AI Market

DeepSeek’s disruptive pricing strategy—charging just 1 yuan ($0.14) per 1 million tokens—forced major Chinese tech companies to cut prices drastically. Here’s how the competition responded:

CompanyResponse to DeepSeek
AlibabaSlashed AI model prices by 97%
BaiduReleased its own ChatGPT alternative
TencentRamped up AI research and development

With this intense competition, the AI market in China is experiencing one of the biggest shakeups in history.


The Future of AI: What’s Next?

The battle between Alibaba and DeepSeek is far from over. Here are some key things to watch in the coming months:

1. More Innovation in AI

Both Alibaba and DeepSeek will continue pushing the boundaries of AI capabilities. Expect faster, more efficient, and cost-effective AI models to emerge.

2. Global AI Competition Intensifies

DeepSeek has already impacted Silicon Valley, forcing tech giants like OpenAI, Google, and Microsoft to rethink their AI strategies. The rapid development of AI in China is likely to drive a new wave of competition worldwide.

3. Will DeepSeek’s Business Model Survive?

DeepSeek’s lean operation and minimalistic approach contrast with Alibaba’s massive workforce and structured corporate environment. Will DeepSeek be able to scale effectively while maintaining its innovation speed?


FAQs: Alibaba Releases AI Model It Says Surpasses DeepSeek

1. What is Alibaba’s Qwen 2.5-Max AI model?

Qwen 2.5-Max is Alibaba’s latest AI model, which the company claims outperforms DeepSeek-V3, GPT-4o, and Llama-3.1-405B in various AI benchmarks.

2. Why did Alibaba release Qwen 2.5-Max during the Lunar New Year?

Alibaba likely wanted to counter the growing dominance of DeepSeek in the AI space. The unexpected timing suggests the company is under pressure to remain competitive.

3. Why is DeepSeek gaining so much attention in the AI industry?

DeepSeek’s AI models are not only high-performing but also significantly cheaper than competitors, making them attractive for businesses and researchers. The company’s goal is to achieve Artificial General Intelligence (AGI).

4. How did DeepSeek impact AI pricing in China?

DeepSeek’s disruptive pricing model—offering AI processing at just 1 yuan per million tokens—forced Alibaba, Baidu, and Tencent to slash their prices dramatically.

5. What’s next for the AI industry after Alibaba’s latest release?

The AI industry will likely see rapid innovation, increased competition between Chinese and Western tech giants, and ongoing price wars that benefit consumers.

Final Thoughts

The battle between Alibaba and DeepSeek is shaking up the AI industry in a way we haven’t seen before. With Qwen 2.5-Max now in the mix, it remains to be seen whether Alibaba can regain the top spot or if DeepSeek’s innovative approach will continue disrupting the market.

One thing is clear: AI development is moving faster than ever, and we’re just getting started!