Alibaba Stock Jumps After Launching Trillion-Parameter AI Model
New Qwen-3-Max model positions the Chinese tech giant to compete directly with OpenAI and Google in the generative AI race.
Alibaba Group Holding Ltd. (BABA) saw its stock climb over 3% in pre-market trading after the company unveiled its most ambitious artificial intelligence model to date, Qwen-3-Max-Preview. The move signals a direct challenge to Western AI leaders like OpenAI and Google's DeepMind, escalating the global race for generative AI dominance.
The new model is Alibaba's first to feature over one trillion parameters, a key metric indicating the complexity and potential capability of an AI system. , this text-only model has already outperformed its predecessors in the company's internal tests, underscoring Alibaba's rapid progress in the field.
This launch is a cornerstone of Alibaba's broader strategy to bolster its core businesses. The company is positioning itself as China's premier GenAI provider, with the advancements expected to strengthen its cloud computing and e-commerce segments. The development also aligns with Beijing's national agenda to build a self-sufficient technology ecosystem.
The strategic implications extend to the semiconductor industry, as Alibaba's AI ambitions are complemented by its recent push into proprietary chip design. This initiative is widely seen as an effort to , particularly high-performance chips from companies like Nvidia, amid ongoing U.S. trade restrictions.
Investors have responded positively to the developments, viewing the combination of a powerful new AI model and strong performance in its cloud unit as a catalyst for future growth. The move reinforces confidence in Alibaba's ability to innovate and expand into fiercely competitive sectors like 'instant commerce' within the Chinese market.