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Another Chinese AI Company Says It's Beaten OpenAI

Jan 29, 2025 - futurism.com
Alibaba has announced that its latest AI model, Qwen 2.5-Max, has surpassed the performance of leading AI models from OpenAI, Anthropic, and Meta, according to benchmarks. This claim follows a similar announcement by DeepSeek, a company from Alibaba's home city of Hangzhou, which also reported achieving performance comparable to OpenAI's models at a lower cost. These developments have caused significant disruptions in the tech market, with Alibaba's shares rising nearly two percent after its announcement.

In response to these advancements, Nvidia's shares fell by about five percent, though the reasons for the drop are not entirely clear. The competitive landscape is intensifying as other Chinese companies, including ByteDance, have also introduced AI models that reportedly outperform OpenAI's offerings. This surge in Chinese AI innovation is leading to a potential price war, as several Chinese AI startups with unicorn valuations prepare to enter the market, challenging US-based companies to keep pace.

Key takeaways:

  • Alibaba claims its Qwen 2.5-Max AI model surpasses major competitors like OpenAI's GPT-4o and Anthropic's Claude 3.5 Sonnet.
  • DeepSeek, based in Hangzhou, previously claimed to outperform OpenAI's models at a lower cost, causing significant market disruption.
  • Alibaba's announcement led to a nearly two percent increase in its shares, while Nvidia's shares fell around five percent.
  • Other Chinese companies, including ByteDance, are also developing competitive AI models, indicating a potential price war with US-based companies.
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