DeepSeek Rivalry: Alibaba's New AI Model Drives 7% Stock Surge

Thursday, 6 March 2025, 05:17

DeepSeek competitor Alibaba Group Holding unveiled its QwQ-32B AI model, driving a 7% surge in stock value. This model outperformed DeepSeek R1 in essential tasks. The announcement emphasizes Alibaba's commitment to advancing artificial intelligence, cloud computing, and technology innovation.
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DeepSeek Rivalry: Alibaba's New AI Model Drives 7% Stock Surge

Alibaba's QwQ-32B Outshines DeepSeek's R1

Alibaba Group Holding has officially launched its QwQ-32B model, a groundbreaking artificial intelligence (AI) reasoning system, igniting a 7.2% surge in its stock price, reaching HK$139.30. The new AI model reportedly outmatches the DeepSeek R1, which boasts 671 billion parameters, in key areas like mathematics, coding, and problem-solving, despite its comparatively modest 32 billion parameters.

Innovative AI Model Launch

  • Alibaba's QwQ-32B utilizes reinforcement learning techniques aligned with the methods employed by DeepSeek in their R1 development.
  • Alibaba chairman Joe Tsai highlighted the importance of practical applications for maximizing intelligence in AI models.
  • The launch comes amidst a surge in AI adoption across China, with Alibaba revealing plans to invest $52 billion in AI and cloud computing infrastructure over the next three years.

Performance Enhancements and Goals

The Qwen team noted that the advancements derived from the new model not only illustrate the transformative potential of reinforcement learning but also position Alibaba on the path toward achieving artificial general intelligence. CEO Eddie Wu Yongming reiterated the company’s goal of reaching 80% of human AI capabilities.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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