Alibaba (BABA) has introduced a new artificial intelligence (AI) model that it claims can surpass the leading models from DeepSeek, OpenAI, and Meta Platforms (META). Following this announcement, Alibaba's U. S. -listed shares gained 3% in early trading on Wednesday. In contrast, shares of Meta and Microsoft (MSFT), which supports OpenAI, experienced minor declines. The Chinese tech company revealed via WeChat that its enhanced Qwen 2. 5 Max performed similarly to Anthropic's Claude 3. 5 Sonnet, which is backed by Amazon (AMZN), and outperformed OpenAI's GPT-4o, DeepSeek's V3, and Meta's Llama 3. 1 in several benchmark evaluations. This update comes shortly after worries about the rising popularity of an app from the Chinese startup DeepSeek, which operates on an AI model it asserts can compete with American counterparts at a significantly lower cost. This situation led to a drop in U. S.

tech stocks on Monday. Although there was a recovery on Tuesday, the tech sector slipped back into negative territory on Wednesday, impacting the major indexes.