Alibaba claims AI supremacy in move to shift tech war to China

30 Jan 2025

Alibaba claims AI supremacy in move to shift tech war to China
Image Source: Free Malaysia Today, licensed under CC BY 4.0.
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Chinese tech company Alibaba on Wednesday released an improved version of its artificial intelligence model, Qwen 2.5, which, it claimed, is way ahead of AI startup DeepSeek’s top performing model V3, taking the technology war to China.

In a post on WeChat, Alibaba’s cloud unit claimed that its `Qwen 2.5-Max’ outperformed DeepSeek’s V3 as well as the top open source models of OpenAI and Meta like GPT-4o and Llama-3.1-405B’ in benchmarks like Arena Hard, LiveBench, LiveCodeBench, GPQA-Diamond. 

Alibaba also claimed that the Qwen2.5-Max outperformed industry leaders like GPT-4o and Claude-3.5-Sonnet in advanced reasoning and knowledge tests.

Another Chinese tech company ByteDance also came up with updated AI model that it claimed to outperform OpenAI's o1 in AIME, a benchmark test for AI models’ ability to understand and respond to complex instructions.

The fight for AI leadership has also led to a price war in China with each company undercutting the other. This started with DeepSeek's V2 model, which was released in China in May last year. It was open-source and as cheap as 1 yuan ($0.14) per 1 million tokens (units of data processed by the AI model). 

Alibaba's cloud unit followed up with price cuts of up to 97 per cent on a range of models. Other Chinese companies like Tencent and Baidu also came up with improved AI models.

DeepSeek is a small group of researchers and does not have the financial backing like major Chinese tech firms. Its founder Liang Wenfeng is also reported to have said that the startup is not concerned with price wars and that its goal is achieving Artificial General Intelligence (AGI).

AGI is an autonomous system that can outperform humans in most complicated tasks.

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