Artificial Intelligence in China: The Competition Between Alibaba and DeepSeek. Recently, Alibaba launched its AI model, Qwen 2.5, claiming that it surpasses the performance of DeepSeek-V3. This highlights the intense competition in the AI field within China, where startups like DeepSeek have rapidly risen, putting pressure on tech giants.
The Rapid Rise of DeepSeek
DeepSeek, a startup founded in 2023 in Hangzhou, has caught attention with the successive release of advanced AI models. In December 2024, the company launched its DeepSeek-V3 model, followed by a significant update in March 2025 called DeepSeek-V3-0324. This update brought notable improvements in reasoning and coding capabilities, solidifying DeepSeek’s position in the AI market. (reuters.com)
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Alibaba’s Response with Qwen 2.5
In light of this intense competition, Alibaba launched its Qwen 2.5-Max model on January 29, 2025, right on the first day of the Lunar New Year, an unusual timing for such announcements. This move highlights the pressure felt by tech giants in response to the rapid rise of startups like DeepSeek.
Comparative Performance of the Models
According to the Chatbot Arena rankings, Alibaba’s Qwen 2.5-Max ranked seventh, surpassing DeepSeek-V3, which was in ninth place. However, the DeepSeek-R1 model achieved a higher rank, placing third. (scmp.com)
Implications of the AI Competition in China
The competition between Alibaba and DeepSeek reflects the dynamism and rapid pace of innovation in China’s AI sector. Supported by favorable government policies and substantial investments, Chinese companies are developing advanced language models, cementing the country’s position as a global leader in AI. (nature.com)
This rivalry is driving innovation and technological development, with the potential to significantly influence the global AI landscape.