--- title: "Another Chinese AI Company Says It’s Beaten OpenAI" description: "Alibaba claims that the latest version of its Qwen AI model has beaten out DeepSeek's V3, and OpenAI's o1." date: "2025-01-29" modified: "2025-01-29" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/the-byte/alibaba-china-ai-beaten-openai-deepseek" categories: - "Artificial Intelligence" - "OpenAI" tags: - "Alibaba" - "china" - "deepseek" - "generative ai" - "OpenAI" - "the digest" --- # Another Chinese AI Company Says It’s Beaten OpenAI ![Alibaba claims that the latest version of its Qwen AI model has beaten out DeepSeek's V3, and OpenAI's o1.]() *\Image: Getty / Futurism\* ## Deep Burning Major Chinese tech company Alibaba claims that the latest version of its Qwen AI model has beaten out DeepSeek's V3, the model that [flipped Silicon Valley on its head]() earlier this week by edging out OpenAI. In a [statement]() posted to the Chinese social media platform WeChat, Alibaba said that its Qwen 2.5-Max "demonstrated world-leading model performance in mainstream authoritative benchmarks" and "comprehensively surpasses" OpenAI's GPT-4o, Anthropic's Claude 3.5 Sonnet, and Meta's Llama 3.1. If confirmed, the claim could mark yet another escalation in the race to develop higher performance and more cost-efficient AI models among Chinese competitors, which have thrown Western tech markets into chaos. The news comes after DeepSeek, which was founded in Alibaba's home city of Hangzhou, similarly claimed that it'd figured out how to achieve similar or even better performance than OpenAI's cutting-edge models at a tiny fraction of the cost. The announcement [led to a massive scramble](), wiping out [over $1 trillion]() worth of market capitalization in former AI frontrunners. Now, Alibaba — which has far more resources at its disposal than DeepSeek — has entered the ring, sending even more shockwaves across markets. Alibaba's shares [surged nearly two percent]() following its announcement. ## Crowding Markets In tandem, AI chipmaker Nvidia also slid around five percent Wednesday morning, though whether the drop was in response to Alibaba's unveiling, [high-end GPU shortages](), or a mix of both, remains unclear. Nvidia was [already feeling the hurt](), having set a new record for the [biggest single-day loss of any company in history](). As [*Reuters* points out](), it's not just Alibaba and DeepSeek. TikTok owner ByteDance, also based in China, also [showed off a new version]() of its flagship AI model last week that reportedly outperforms OpenAI's o1 AI model in certain benchmarks. As [*Bloomberg* reports](), around half a dozen other Chinese AI startups with unicorn valuations are waiting in the wings, hinting at an imminent price war as US-based companies race to compete. **More on DeepSeek:** *[OpenAI Says DeepSeek Used Its Work Without Permission to Create an AI That's Stealing Its Job]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()