Alibaba Shares Surge 8% on AI Model Launch

Alibaba's Hong Kong-listed shares surged over 8% following the release of their new AI reasoning model, QwQ-32B, which claims comparable performance to DeepSeek's R1 model despite using significantly fewer parameters. The QwQ-32B model, accessible via Alibaba's Qwen Chat, demonstrated advanced capabilities in reasoning and problem-solving, rivalling top models like OpenAI's o1 mini. This development comes as China increases support for AI and other industries, boosting confidence in the tech sector. Investors responded positively, contributing to a rise in Alibaba's market value amidst a broader recovery of China's tech industry. Alibaba's continued investment in AI infrastructure, alongside government backing, signals its ambition to lead in AI, despite previous regulatory challenges. The emergence of new competitors like Tencent's Yuanbao and Monica's Manus highlights the intensifying AI race within China.