Alibaba Launches Qwen AI, More Advanced than DeepSeek?

Bittime - Tight competition in the world of artificial intelligence (AI) is heating up, especially in China. Recently, Alibaba Group launched their newest model, Qwen 2.5-Max, which is claimed to be able to outperform competing AI models such as DeepSeek-V3, OpenAI's GPT-4o, and Meta's Llama-3.1-405B. 

Qwen 2.5-Max Benefit Claims

This claim was made via Alibaba's cloud unit's WeChat account, accompanied by performance test results showing the Qwen 2.5-Max's superiority in tasks such as chat, programming and data analysis.

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Technological Leap Amid Semiconductor Limitations

The launch of the Qwen 2.5-Max comes shortly after DeepSeek, a Chinese AI startup, rocked the market with the release of its model DeepSeek-V3 (January 10) and model open-source R1 (January 20). DeepSeek's strategy of offering lower prices has succeeded in pushing down shares of US technology companies, raising questions about the sustainability of Silicon Valley-style investment-based business models.

Responding to this, Neil Shah of Counterpoint Research stated, "The war of AI models is now not just China vs. US, but also fierce competition between Chinese companies themselves. Limited access to advanced semiconductors and global data is driving innovation faster."

Impact on the Global Economy and Markets on the AI ​​Industry

The arrival of Qwen 2.5-Max and DeepSeek-V3 accelerates the trend of cost-effective AI development. According to Hyun Park, CEO of Amalgam Insights, the emergence of the model open-source like R1 could change the market by putting pressure on the price of AI services. "This opens up opportunities for companies like IBM Red Hat to offer AI-based managed services at scale," he added.

On the other hand, geopolitics remains a challenge. China's AI models may be restricted in some countries, while China itself could potentially tighten the use of Western models. IDC's Sharath Srinivasamurthy reminds, "Companies need to ensure AI models comply with global privacy regulations before adopting them."

Read too Who is Behind DeepSeek AI and Who is Funding It? This is the explanation!

The Future of China's AI Innovation

Although Alibaba and DeepSeek have shown significant progress, Srinivasamurthy emphasized that China's investment in AI research is still in its early stages. "Other companies like Tencent or Baidu may soon follow with their own models," he said.

With claims to the superiority of the Qwen 2.5-Max, Alibaba is trying to strengthen its position in the domestic and global markets. However, is this claim enough to unseat the dominance of DeepSeek or the US giant? The answer depends on how quickly their innovations are accepted by the market and widely adapted.

Things to Note:

1. Real Performance: Independent test results are required to validate Alibaba's claims.

2. Pricing Strategy: The competitiveness of AI models will be determined by the balance of performance and cost.

3. Regulations: Government policies can be a barrier or driver to global adoption.

Conclusion

For industry players, this competition opens up opportunities to choose more efficient AI solutions, as well as challenges in navigating regulatory and security complexities.

3 Quick FAQs about Alibaba Qwen AI vs. DeepSeek

1. What are the main advantages of the Qwen 2.5-Max according to Alibaba?

Alibaba claims the Qwen 2.5-Max excels at tasks such as programming, data analysis, and chat compared to competing models such as the DeepSeek-V3, GPT-4o, and Llama-3.1-405B. This claim is supported by internal performance test results, although it still needs independent validation.

2. How will DeepSeek's strategy impact the global AI market?

DeepSeek shakes up the market with models open-source low costs (like R1), driving down the price of AI services and raising questions about the sustainability of massive US-style investments. This is also encouraging companies like IBM to offer managed AI-based services open-source.

3. What are the main challenges of adopting Chinese AI models in the global market?

Geopolitical factors, such as restrictions on the use of Chinese models in certain countries and global privacy regulations, are obstacles. Companies must ensure legal compliance before adopting this model widely.

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Reference

Prasanth Aby Thomas, Alibaba introduces Qwen 2.5-Max AI model, claims edge over DeepSeek, Accessed January 31, 2025

Author: IN