HONG KONG: Alibaba introduced its latest AI model, QwQ-32B, on Thursday, claiming it surpasses OpenAI’s model and rivals DeepSeek-R1.
The announcement led to an 8% rise in Alibaba’s Hong Kong-listed shares, boosting the Hang Seng China Enterprises Index.
The AI release follows the launch of Manus, an advanced AI agent capable of executing complex tasks beyond simple chat responses.
Manus can screen resumés, generate reports, and build websites based on specific instructions, according to its promotional video.
Alibaba’s model aims to advance mathematics, coding, and reasoning, delivering better efficiency compared to other open-source AI models.
AI Capabilities
QwQ-32B reportedly outperforms OpenAI’s cost-efficient model, OpenAI-o1-mini, launched last year.
Alibaba claims it has achieved a “qualitative leap” in various AI capabilities, making it a strong competitor in the industry.
Despite having only 32 billion parameters compared to DeepSeek-R1’s 671 billion, Alibaba’s model is more efficient to train.
DeepSeek R1 gained global attention in January for offering high-level reasoning abilities at a lower training cost.
This success boosted investor confidence in China’s AI advancements amid ongoing U.S.-China tech competition.
Growing Competition
Alibaba first introduced its ChatGPT-equivalent, Tongyi Qianwen, in 2023 following OpenAI’s groundbreaking AI developments.
In January 2025, it launched Qwen 2.5 Max, which it claimed outperformed DeepSeek’s V3 model released weeks prior.
Alibaba pledged a massive investment of 380 billion yuan ($52.4 billion) in AI and cloud computing infrastructure.
This investment exceeds the company’s total spending in these sectors over the past decade, emphasizing its AI ambitions.
Chinese leaders have promised increased support for emerging technologies, including AI, robotics, and quantum computing.
Market Impact
The Hang Seng China Enterprises Index has surged over 30% since January, reflecting investor optimism in Chinese AI innovation.
DeepSeek’s advancements reassured global markets about China’s AI capabilities in a rapidly evolving technology sector.
Alibaba’s expanding AI ecosystem puts it in direct competition with Western firms like OpenAI and Google DeepMind.
The company’s latest developments highlight its strategic push to lead the global AI market while enhancing cloud services.
China continues to invest heavily in AI and computing, solidifying its position as a major player in artificial intelligence.
