Alibaba Rolls Out AI Model It Says Can Outperform DeepSeek's and OpenAI's

Core Insights - Alibaba has launched a new AI model, Qwen 2.5 Max, claiming it can outperform leading models from DeepSeek, OpenAI, and Meta Platforms [1][4] - Following the announcement, Alibaba's U.S.-listed shares increased by 3% in early trading [1] - The upgraded model reportedly performed on par with Amazon-backed Anthropic's Claude 3.5 Sonnet and surpassed OpenAI's GPT-4o, DeepSeek's V3, and Meta's Llama 3.1 in benchmark tests [2] Market Context - The news of Alibaba's AI model comes shortly after concerns regarding the rising popularity of DeepSeek's AI model, which reportedly competes with American counterparts at a lower cost, negatively impacting U.S. tech stocks [3][4] - The tech sector experienced volatility, with major indexes affected by the news, and shares of Nvidia, Broadcom, and Palantir also declining [3][4]