Alibaba plans to invest $53 billion in cloud computing and AI infrastructure over the next three years, reflecting a trend among Big Tech companies to increase AI-related capital expenditures. The open-sourcing of the QwQ-32B model, which has one-fifth of the parameters of DeepSeek-R1, highlights its efficiency and is now available on platforms like Hugging Face. This development follows DeepSeek's launch of an open-sourced AI model in January, which outperformed peers from OpenAI and Meta, altering the narrative of China's tech industry towards innovation-driven growth.
Key takeaways:
- Alibaba shares surged 7% after open-sourcing its QwQ-32B AI model, which is more energy- and cost-efficient compared to DeepSeek's R1.
- Alibaba's shares have risen close to 70% this year amid a Chinese tech stock rally, driven by innovation and AI investments.
- Alibaba plans to invest $53 billion in cloud computing and AI infrastructure over the next three years, highlighting the importance of AI-related investments.
- DeepSeek's open-sourced AI model has altered the narrative of China tech, outperforming peers from OpenAI and Meta, and driving Cloud capex in China.