Alibaba's stock surged 1.9% due to introduction of Qwen AI model

From Nasdaq: 2025-01-29 14:38:03

Alibaba Group Holding’s stock (NYSE: BABA) surged 1.9% on Wednesday, outperforming the S&P 500 and Nasdaq. Following the release of Chinese AI chatbot DeepSeek, Alibaba introduced its Qwen AI model, sparking investor interest. The company aims to stay competitive in the rapidly evolving AI market.

DeepSeek, a Chinese AI model, caused U.S. AI stocks to drop with its superior efficiency and cost-effectiveness. Alibaba responded with Qwen 2.5-Max, claiming it surpasses DeepSeek’s capabilities. Despite the competition, Alibaba faces challenges catching up to DeepSeek’s latest advancements.

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Read more at Nasdaq: Why Alibaba Stock Is Surging Today