Alibaba Stock Soars As New AI Model Rivals DeepSeek
- This topic has 10 replies, 1 voice, and was last updated 1 day ago by
.
-
Topic
-
Alibaba’s stock experienced a significant surge after the company unveiled its new AI model, QwQ-32B, which it claims rivals DeepSeek-R1, a leading reasoning model in the AI space.
Shares hit a 52-week high in Hong Kong, climbing 8.39%, as investors responded positively to the announcement.
This development underscores Alibaba’s growing focus on AI and its potential to drive future growth, particularly in its cloud computing division.
Built on Alibaba’s Qwen2.5-32B foundation, QwQ-32B is a compact reasoning model with 32 billion parameters.
Despite its smaller size compared to DeepSeek-R1’s 671 billion parameters, QwQ-32B has demonstrated competitive performance across key benchmarks, including mathematical reasoning, coding proficiency, and instruction-following capabilities.
For instance, it scored 79.5 on the AIME24 math benchmark, narrowly trailing DeepSeek-R1’s 79.8 and outperforming OpenAI’s o1-mini (63.6).
This efficiency highlights Alibaba’s ability to leverage advanced reinforcement learning techniques to achieve cutting-edge results with fewer resources.
The stock surge reflects investor confidence in Alibaba’s AI strategy and its potential to enhance the company’s cloud computing revenue.
Alibaba’s cloud division has already seen triple-digit growth in AI-related product revenue for six consecutive quarters, and the introduction of QwQ-32B is expected to further solidify its position in the competitive AI market.
Analysts believe this model could attract more enterprise customers seeking cost-effective yet high-performance AI solutions, thereby boosting Alibaba’s profitability and market share.
Alibaba’s move comes amid intensifying competition in the AI sector, particularly between Chinese and Western tech giants.
DeepSeek-R1, which gained international attention for its high performance and lower training costs, set a high benchmark for reasoning models.
By launching QwQ-32B, Alibaba not only challenges DeepSeek but also positions itself as a key player in the global AI race.
This development could accelerate innovation and drive down costs in the industry, benefiting businesses and consumers alike.
The success of QwQ-32B could mark a turning point for Alibaba, enabling the company to diversify its revenue streams and reduce its reliance on traditional e-commerce.
As Alibaba continues to invest in AI infrastructure and expand its cloud services, the company is well-positioned to capitalise on the growing demand for AI-driven solutions.
However, challenges remain, including regulatory scrutiny and the need to maintain technological leadership in a rapidly evolving market.
Sources: eToro, MarketScreener
