Alibaba’s Qwen 2.5-Max Challenges DeepSeek and ChatGPT Amid US-China Tensions
- Abeera Marium Siddiqui
- January 30, 2025
- 4:07 pm
- 59
- Technology
New competitor in the AI Battle: Qwen 2.5 is Alibaba’s latest AI model. The company says it performs better than DeepSeek-V3 and even OpenAI’s GPT-4. This bold claim has shaken the global AI market.
Alibaba vs. DeepSeek: A Growing Rivalry
Alibaba launched Qwen 2.5-Max at a surprising time—on the first day of the Lunar New Year, a major holiday in China. The timing suggests Alibaba wanted to make a strong statement against DeepSeek, a rising AI competitor.
DeepSeek recently launched its V3 model, gaining attention for its performance and lower cost. This put pressure on Alibaba and other tech giants to improve their AI technology.
Is Qwen 2.5 Really the Best?
Alibaba’s cloud unit says Qwen 2.5-Max is better than OpenAI’s GPT-4, DeepSeek-V3, and Meta’s Llama-3.1-405B. If true, this would make it one of the most powerful AI models available today.
DeepSeek has already shaken the AI industry. When it launched its R1 model, global tech stocks dropped. Investors questioned if US-based AI companies were spending too much, especially since DeepSeek developed its AI at a lower cost.
More Competition Among Chinese AI Companies
Alibaba is not the only company feeling the heat. Two days after DeepSeek’s R1 launch, ByteDance released an updated AI model. The TikTok owner says its AI is better than OpenAI’s o1 in benchmark tests.
The race to build smarter, cheaper AI is moving fast. Every new model increases competition. Tech companies are pushing hard to stay ahead.
Will This Lead to a US-China Trade War?
China’s AI progress is making US policymakers nervous. Former President Donald Trump called DeepSeek’s success a “wake-up call” for American tech firms. He has warned that the US must stay ahead in AI.
Trump’s campaign also promised a 60% tariff on Chinese imports. While this policy is still under review, a decision is expected by April 1.
With AI competition growing and trade tensions rising, the global tech industry is watching closely. The battle between Alibaba, DeepSeek, and other AI leaders is just beginning.
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