The AI competition just got even more intense this week, and it doesn’t look like it’s going to slow down anytime soon.

Alibaba has rolled out a new AI model that they claim beats the well-regarded DeepSeek-V3.

On Wednesday, the Chinese tech giant unveiled an updated version of its Qwen 2.5 AI model.

The timing is a bit odd since it coincides with the first day of the Lunar New Year, a time when many in China are off work and spending time with family.

This could be a response to the pressure that Chinese AI startup DeepSeek has been putting on both international competitors and local players.

Alibaba stated that their latest Qwen model outshines DeepSeek, as well as the most advanced open-source AI models from OpenAI and Meta.

DeepSeek's recent AI assistant launch has sent shockwaves through Silicon Valley, causing a dip in tech stocks.

Investors are now questioning the hefty spending plans of major U.S. AI companies, thanks to DeepSeek's supposedly low development and operational costs.

Moreover, DeepSeek's success has triggered a rush among its domestic rivals to enhance their own AI offerings.

Last May, the earlier version of DeepSeek's V3 model ignited a price war for AI models in China.

This prompted Alibaba's cloud division to announce price cuts of up to 97% on various models.

Other Chinese tech giants, like Baidu and Tencent, quickly followed suit.