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Alibaba Group Holding Limited's new AI model Qwen 2.5-VL could boost its Cloud business growth, outperforming competitors. Click for my BABA stock update.

Shares of Alibaba Group Holding ( BABA 1.56%) were flying higher on Wednesday. The company's stock gained 1.9% as of 1:50 p.m. ET, but rose as much as 5.5% earlier in the day. The move up comes as the S&P 500 ( ^GSPC -0.76%) and Nasdaq Composite ( ^IXIC -0.84%) lost 0.6% and 0.9%, respectively.

Alibaba Cloud, the cloud computing arm of China’s Alibaba Group Ltd., has released its latest breakthrough artificial intelligence large language model just in time for the Chinese New Year: Qwen 2.5-Max, which it claims surpasses today’s most powerful AI models.

Chinese e-commerce giant Alibaba Group Holding Limited (NYSE:BABA) released a new version Wednesday of its Qwen large language model, known as Qwen2.5 Max, which it said topped DeepSeek's AI model across various benchmarks.

Alibaba Group Holding released on Wednesday an upgraded version of its Qwen artificial intelligence (AI) model, which it said "comprehensively outperformed" in certain benchmark tests DeepSeek-V3, the large language model (LLM) launched in December by China's hottest start-up.

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The competition for AI supremacy heats up among Alibaba Cloud’s Qwen 2.5-Max, DeepSeek’s models, and OpenAI’s ChatGPT. DeepSeek’s efficiency challenges established giants, while Alibaba’s release underscores the urgency of adapting to a shifting AI landscape.

Alibaba Group Holding Ltd (NYSE: BABA) is inching up this morning as investors continue to hail its launch of a new AI model that it claims is more powerful than OpenAI as well as DeepSeek. The artificial intelligence assistant the company is calling Qwen 2.