Just two weeks after launching the Qwen 2.5-Max model, Alibaba is back with another AI model, the QWQ-32B (QWEN2.5-32B).
Announcing its launch on X, Alibaba described the QWQ-32B as an inference model designed to match the performance of major alternatives such as DeepSeek-R1, while operating with significantly fewer parameters.
Investors seem to like what they are listening. Alibaba’s Hong Kong-listed stocks rose 8.39% on Thursday, reaching a 52-week high. Since the beginning of this year, Hong Kong’s Alibaba stock has skyrocketed by nearly 71%.
QWQ-32B vs DeepSeek R1: Can Alibaba’s AI model compete?
The QWQ-32B is running with 32 billion parameters. This is part of DeepSeek’s 671 billion. But Alibaba says it achieves comparable results thanks to a more efficient design. Only 37 billion parameters are active during inference, making it a slimmer model while providing strong performance. AI developers are increasingly prioritizing models that require computing power without sacrificing their capabilities.
Today we are releasing the QWQ-32B, a new inference model with only 32 billion parameters, comparable to the state-of-the-art inference model, such as the DeepSeek-R1.
Blog: https://t.co/zcgacndodj
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Demo: https://t.co/dxwpzag6g8
Qwen Chat: …pic.twitter.com/kfvbngnucw– Qwen (@alibaba_qwen) March 5, 2025
The company also highlighted its ongoing efforts to improve reinforcement learning (RL) technology, saying these advances have led to significant improvements in areas such as mathematics and coding. Alibaba believes that by continuously scaling RL, medium-sized models can reach the performance levels previously seen only in much larger architectures. In addition to the announcement, Alibaba shared links to the model’s documentation, demos, and chat interfaces, urging users to test and provide feedback.
According to Alibaba, the QWQ-32B shows strong results, especially in mathematics and coding. The company hopes to further refine its model in response to growing competition in AI. The timing is no coincidence. Deepseek’s R1, introduced earlier this year, sets a new benchmark for the inference model. Since then, established tech giants and AI startups have been rushing to drive their own progress as well.
Chinese companies are stepping up their AI investments, and Alibaba has established itself as a key player. The company has put resources into its cloud intelligence unit and has played a major role in recent profit growth. CEO Eddie Wu revealed that AI will be the core focus and said, “The revenue growth of the AI-driven Cloud Intelligence Group will continue to accelerate.”
Analysts are optimistic that AI can burn momentum in Alibaba’s inventory. While Bernstein analysts look at a path to sustainable revenue growth, industry experts highlight how AI models are more accessible. Futurum Group CEO Dan Newman said the emergence of Deepseek on CNBC forced the industry to force Openai to remain the dominant player or to reconsider whether challengers like Alibaba, Microsoft, Google and others will lead.
Newman points out that AI models are moving towards commoditization, and companies are working to reduce costs and make them more widely available. “If we find this more efficient, we also see that use is turned off because this cost is lower,” he said. Nvidia has benefited from the AI training boom, but he believes that the way AI is actually applied in real use cases – the next wave of growth will occur.
Alibaba bets on that shift. With the QWQ-32B, the company is moving forward in spaces where efficiency and scalability are as important as raw model sizes. It’s still not clear whether it can really compete with Deepseek’s R1, but one thing is clear. AI races are just getting stronger.
Alibaba’s AI Push surpasses its own model
Alibaba is not only focused on building its own AI, but also supports other Chinese AI startups. In late 2023, the company joined Tencent and other investors, investing $340 million in Openai’s competitor, Zhipu.
Zhipu positions itself as one of China’s top generation AI startups and plays an important role in shaping the country’s AI landscape. Meanwhile, tech giants like Alibaba, Tencent and Baidu aren’t just about investing. They are actively developing their own AI models and developing new products equipped with this technology.
