The stock of Alibaba (BABA) is up nearly 10% after the Chinese technology giant unveiled a new artificial intelligence (A.I.) model.
Alibaba claims that its newest A.I. chatbot outperformed models from U.S. start-up OpenAI and Chinese rival DeepSeek.
News of Alibaba’s latest A.I. advance has its stock up 9%, continuing an advance that has lifted the company’s share price 66% so far this year.
The new A.I. model from Alibaba, called “QwQ-32B,” delivers “exceptional performance” that surpasses both OpenAI and DeepSeek, says the company.
Alibaba adds in a written statement that its latest A.I. model has achieved a “qualitative leap in mathematics, coding, and general capabilities.”
At the same time, Alibaba says that its newest A.I. model is even smaller and more cost-efficient to train than DeepSeek’s model.
DeepSeek stunned the world in January with its high-performing A.I. model that it said cost only $6 million U.S. to develop compared to the billions being spent by U.S. technology companies.
Last week, Alibaba promised to invest $52 billion U.S. in it’s A.I. and cloud computing infrastructure over the next three years.
China’s government in Beijing has pledged support for “emerging industries and industries of the future,” including increasing funding for A.I. in the nation of 1.4 billion people.
Alibaba’s stock is currently trading at $141 U.S. per share, having gained 91% over the last 12 months.
