On January 29, 2024, Alibaba stunned the AI industry by launching Qwen 2.5, an updated version of its artificial intelligence model, claiming it outperforms the much-discussed DeepSeek-V3. The timing of this release—on the first day of the Lunar New Year, a major holiday in China—suggests the intensifying competition within the country’s AI landscape.
Alibaba’s AI Ambitions
Alibaba has been aggressively expanding its AI capabilities, particularly through its Damo Academy, the company's research division. Qwen (Tongyi Qianwen in Chinese) has been at the core of its large language model (LLM) efforts, competing with OpenAI’s GPT models, Google’s Gemini, and Baidu’s Ernie Bot.
With the release of Qwen 2.5, Alibaba is making a bold statement—not just against global AI leaders but also against domestic challengers like DeepSeek, which has been rapidly gaining traction.
DeepSeek’s Rapid Rise
DeepSeek, a relative newcomer in the AI field, made headlines in early 2024 with its DeepSeek-V3 model, which demonstrated impressive language understanding and generation capabilities. The model quickly gained recognition, drawing comparisons with top-tier AI models from OpenAI and Google.
DeepSeek’s sudden success has put pressure on China’s biggest tech firms, including Alibaba, Baidu, and Tencent, to accelerate their AI advancements. By launching Qwen 2.5 at such an unusual time, Alibaba is signaling that it is unwilling to cede ground to this fast-growing rival.
What’s New in Qwen 2.5?
While Alibaba has not released detailed benchmarks yet, it claims that Qwen 2.5 surpasses DeepSeek-V3 in multiple key areas:
- Better Language Understanding & Generation – Improved coherence, reasoning, and contextual awareness.
- Enhanced Multimodal Capabilities – Greater ability to process text and images together.
- More Efficient Performance – Optimized for inference speed and lower computational costs.
These improvements position Qwen 2.5 as a serious contender in the global AI race, not just within China but against Western AI models as well.
China’s AI Battle: Alibaba vs. DeepSeek
The Chinese AI industry is seeing a fierce battle for dominance, with multiple companies vying for leadership. While Baidu’s Ernie Bot was once seen as Alibaba’s primary competitor, DeepSeek’s rapid growth has reshuffled the hierarchy.
Alibaba’s decision to launch Qwen 2.5 in the midst of a national holiday underscores the urgency it feels to maintain its edge. By making this move, Alibaba is ensuring that it stays in the AI conversation and keeps up the pressure on both DeepSeek and global AI leaders.
What’s Next?
With China’s strict AI regulations and ongoing U.S.-China tech tensions, companies like Alibaba and DeepSeek will have to navigate complex challenges. However, their rapid advancements show that China’s AI industry is not just catching up but also setting new benchmarks.
If Alibaba’s Qwen 2.5 truly outperforms DeepSeek-V3, it could regain momentum in the domestic AI race and strengthen its position internationally. Either way, the rivalry between Alibaba and DeepSeek is one to watch closely in the coming months.
Final Thoughts
Alibaba’s surprise Lunar New Year release of Qwen 2.5 is a clear indication of the high stakes in China’s AI competition. As AI development accelerates globally, the battle for supremacy is no longer just between the U.S. and China—it is also an intense fight within China itself.
With Qwen 2.5 now in the spotlight, the big question is: Will it truly surpass DeepSeek-V3, or is this just a marketing move? The coming weeks will reveal whether Alibaba’s latest AI gamble pays off.