Chinese tech giant Alibaba introduced its new Qwen 2.5-Max AI model, claiming it outperforms the highly praised DeepSeek-V3.

Figure 1. Alibaba Launches Qwen 2.5 AI Model, Claims Superiority Over Deepseek-V3.

The timing of the release, coinciding with the first day of the Lunar New Year—a time when most Chinese people are with their families and off work—signals the growing pressure from DeepSeek's rapid rise in just the past three weeks. This has not only affected international competitors but also Alibaba’s domestic rivals. Figure 1 shows Alibaba Launches Qwen 2.5 AI Model, Claims Superiority Over Deepseek-V3.

Alibaba's cloud division stated in an announcement on its official WeChat account that "Qwen 2.5-Max outperforms almost across the board GPT-4, DeepSeek-V3, and Llama-3.1-405B," referring to the leading AI models from OpenAI and Meta.

In Short

• Alibaba unveiled a new version of its Qwen 2.5 AI model, claiming it outperforms GPT-4 and DeepSeek-V3.
• The release coincided with the first day of the Lunar New Year, reflecting the pressure from DeepSeek's recent success.
• DeepSeek's rapid rise has challenged both international and domestic competitors.

Chinese tech giant Alibaba (9988.HK) launched an updated version of its Qwen 2.5 AI model on Wednesday, asserting that it surpasses the renowned DeepSeek-V3. The release, on the first day of the Lunar New Year when most people are with their families, signals the impact of DeepSeek's swift rise over the past three weeks, creating pressure on both global and local rivals.

Qwen 2.5-Max Surpasses DeepSeek-V3 and Competes with Leading AI Models

Alibaba’s newly released Qwen 2.5-Max AI model is said to outperform DeepSeek-V3, the recently unveiled model from domestic competitor DeepSeek, which has taken the global tech market by storm. DeepSeek-V3 has been lauded for its ability to match the capabilities of OpenAI’s ChatGPT and Meta’s Llama-3.1, while being developed at a fraction of the cost. According to Alibaba's cloud division, “Qwen 2.5-Max outperforms almost across the board GPT-4, DeepSeek-V3, and Llama-3.1-405B.”

Alibaba Launches Qwen 2.5-Max AI, Surpassing DeepSeek-V3 on Key Benchmarks

Alibaba has launched its Qwen 2.5-Max AI model on the Alibaba Cloud Bailian platform, claiming it has surpassed the DeepSeek-V3 model on various benchmarks, including LiveBench, LiveCodeBench, MMLU-Pro, and Arena-Hard. The release of Alibaba’s advanced AI model, following the rise of DeepSeek-V3, has sparked discussions about the dominance of US-based Big Tech firms in the global AI race.

Rising Competition in AI Poses Challenge to US Tech Giants, with Optimism for India

The recent surge in AI developments, including Alibaba's launch of Qwen 2.5-Max and DeepSeek's rise, has raised concerns that Wall Street giants like Microsoft Corp. may lose their lead in the next phase of AI. The growing number of companies with leaner development costs and more efficient AI models has shifted market dynamics. While these developments have unsettled the US tech market, analysts are optimistic about the opportunities for India, with DeepSeek’s success fueling positive expectations for the region.

Alibaba has unveiled its Qwen 2.5 AI model, which is designed to compete in the rapidly evolving AI landscape. The company claims that this new model outperforms the DeepSeek-V3 AI, which has recently garnered attention for its remarkable capabilities and efficiency. The launch is part of Alibaba’s ongoing push to strengthen its position in the AI space, particularly in the wake of DeepSeek’s impressive rise.

The Challenge of DeepSeek-V3

DeepSeek, a Chinese AI startup, has made waves in the global tech market with its DeepSeek-V3 model. This model is seen as a game-changer because it offers performance that rivals AI models from major US companies like OpenAI’s GPT-4 and Meta’s Llama-3.1, but at a fraction of the development cost. This has raised concerns among global competitors, including Alibaba, as the startup’s rapid rise has made it a significant player in the AI sector.

Qwen 2.5-Max’s Claims of Superiority

In response to DeepSeek-V3's success, Alibaba has launched its Qwen 2.5-Max model, claiming it outperforms not only DeepSeek-V3 but also other leading AI models, including GPT-4 and Llama-3.1-405B. According to Alibaba’s cloud division, Qwen 2.5-Max surpasses these models on several benchmarks such as LiveBench, LiveCodeBench, MMLU-Pro, and Arena-Hard. These claims are part of Alibaba’s effort to assert dominance in the AI market and challenge the current leaders.

Strategic Timing and Market Impact

The timing of Alibaba’s Qwen 2.5-Max release, coinciding with the Lunar New Year holiday, highlights the competitive pressure in the AI sector. DeepSeek's rapid rise has put not only international tech giants at risk but also local competitors like Alibaba. The market response to these advancements suggests a shift in the global AI landscape, where leaner, more cost-efficient models are emerging as serious challengers to the established players in the US tech sector.

Implications for the Global Tech Market and India

The growing competition in the AI market, led by DeepSeek and now Alibaba, raises important questions about the future dominance of US-based tech giants. Analysts predict that the emergence of these cost-effective, highly efficient AI models could create opportunities for countries like India to benefit from the evolving tech ecosystem. The success of companies like DeepSeek has sparked optimism for India, positioning it as a potential hub for AI development and innovation in the years to come.

Source:Business Standard

Cite this article:

Priyadharshini S (2025),Alibaba Unveils Qwen 2.5 AI Model, Claims it Surpasses Deepseek-V3, AnaTechMaz, pp. 211