Alibaba Cloud has introduced Qwen 2.5-Max, its latest artificial intelligence model, claiming it outperforms OpenAI’s GPT-4o, Meta’s Llama-3.1-405B, and DeepSeek-V3 across multiple benchmarks. The announcement comes as AI development in China gains momentum, with new players entering the space and established firms adjusting their strategies.
In recent weeks, DeepSeek has gained traction with a different approach to AI. Its V3 model, introduced late last year, was reportedly trained on a budget of just USD 5.6 million, a fraction of what larger firms typically spend. Then, just before the Lunar New Year, DeepSeek followed up with R1, a model said to be on par with OpenAI’s GPT-o1.
Unlike models that depend on large-scale computing infrastructure, DeepSeek has prioritized efficiency and lower costs. This approach has attracted interest from businesses seeking a balance between AI performance and cost-effectiveness. Amazon Web Services and Microsoft—an OpenAI backer—have also added R1 to their model catalogs, further raising its visibility.
Meanwhile, Alibaba is taking a different route. With Qwen 2.5-Max, the company is focusing on both AI performance and cloud infrastructure. The model is part of a broader rollout that includes a series of upgraded cloud computing services aimed at enhancing efficiency for AI applications.
To drive adoption, Alibaba Cloud is also launching a generative AI “empowerment program,” offering free cloud credits, training, and co-marketing opportunities for developers and businesses using Qwen models. In its statement, Alibaba said the goal is to support AI adoption across industries while equipping enterprises with the tools to scale their applications.
For Beijing, these developments are likely encouraging. The releases of Qwen 2.5-Max and DeepSeek’s latest models signal China’s growing role in the global AI sector. Once viewed as trailing industry leaders like OpenAI, Meta, and Google, China’s AI firms are now demonstrating their ability to compete on equal footing—and, in some cases, exceed expectations set by global counterparts.