Alibaba Ups AI Game, Says Its Qwen2.5 Max Beats DeepSeek and OpenAI In Performance

Chinese e-commerce giant Alibaba Group Holding Limited BABA released a new version of its Qwen large language model, known as Qwen2.5 Max, which it said topped DeepSeek's AI model across various benchmarks.

Alibaba Cloud said Qwen2.5 Max impressed versus OpenAI's GPT-4o, DeepSeek-V3, and Meta Platforms Inc's META Llama-3.1-405B in specific benchmarks, the Wall Street Journal reports.

Alibaba announced that Qwen2.5-Max is now available in Qwen Chat.

Also Read: DeepSeek's AI Breakthrough Benefits Microsoft, But Oracle Faces Cloud Growth Challenges: Analyst

In the newly released family of AI models, Qwen2.5-VL can parse files, comprehend videos, count objects in images, and control a PC.

This model is similar to the one powering OpenAI's recently launched Operator. Qwen2.5-VL model claimed to beat OpenAI's GPT-4o, Anthropic's Claude 3.5 Sonnet, and Google's Gemini 2.0 Flash in various video understanding, math, document analysis, and question-answering evaluations.

Just over a week ago, Chinese AI startup DeepSeek launched its latest open-source AI model, R1. R1 said it excelled at problem-solving, performing on par with OpenAI's GPT-4o reasoning model–but at a fraction of the cost per use.

DeepSeek's AI assistant app recently topped iPhone download rankings in the U.S.

Cloud providers, including Alibaba and Tencent Holdings TCEHY, have doled discounts to win market share.

U.S. tech stocks plunged on Monday as DeepSeek R1 made the market nervous over the sustainability of the AI technology investment. Nvidia Corp NVDA lost $600 billion in market cap.

Price Action: BABA stock is up 4.21% at $100.07 at the last check on Wednesday.

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