Release Date: January 29, 2025
11:46 AM Eastern Time
Essential Highlights
- Alibaba has rolled out a new AI model, asserting that it can exceed the capabilities of technologies from DeepSeek, OpenAI, and Meta Platforms.
- In the wake of the announcement, the Chinese technology behemoth’s U.S.-listed shares rose during the initial trading session on Wednesday.
- Just prior to this news, worries regarding the growing popularity of a model from the Chinese firm DeepSeek had triggered a notable decline in U.S. tech stocks on Monday.
Alibaba (BABA) has unveiled a new artificial intelligence (AI) model, claiming that its performance can surpass that of leading models from DeepSeek, OpenAI, and Meta Platforms (META).
Following the announcement, Alibaba’s U.S. stock increased by 3% during early trading on Wednesday, while shares of Microsoft (MSFT), which backs Meta and OpenAI, experienced a slight downturn.
The Chinese technology giant mentioned in a WeChat update that its enhanced Qwen 2.5 Max performed similarly to Amazon (AMZN)-backed Anthropic’s Claude 3.5 Sonnet in specific benchmark evaluations and outperformed OpenAI’s GPT-4o, DeepSeek’s V3, and Meta’s Llama 3.1 in several assessments.
This announcement arrived just days after concerns regarding the increasing popularity of an application from the Chinese startup DeepSeek led to a significant drop in U.S. tech stocks on Monday. After a recovery on Tuesday, the tech sector faced another decline on Wednesday, impacting major indices.
AI chip manufacturer NVIDIA (NVDA) experienced a nearly 5% drop in its stock on Wednesday, becoming one of the largest decliners in the Dow Jones Industrial Average, as well as the biggest loser in the S&P 500 and Nasdaq. Shares of other closely monitored companies like Broadcom (AVGO) and Palantir (PLTR) also saw decreases.
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