On Tuesday, Chinese e-commerce firm Alibaba Group Holding (NYSE:BABA) showcased its next reasoning model, QwQ-Max. This model could rival industry-leading competitors, including OpenAI’s o1 and DeepSeek’s R1.

The Qwen team said that QwQ-Max-Preview is free on the Qwen chatbot website, SCMP reports.

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The company’s release of QwQ-Max-Preview coincided with the DeepSeek campaign to make five of its code repositories public.

Qwen’s latest reasoning model is part of an AI system replicating how humans think, make decisions, and solve problems. The Qwen team said it would open-source its coming QwQ-Max model and the base version of Qwen 2.5 Max.

On Monday, Alibaba committed $53 billion to cloud and AI infrastructure over the next three years.

Alibaba plans to release smaller open-source reasoning models as demand rises for lightweight and resource-efficient solutions.

Chinese tech giants Tencent Holdings (OTC:TCEHY), Alibaba, and ByteDance have increased orders for Nvidia Corp’s (NASDAQ:NVDA) H20 AI chips.

Benchmark’s Fawne Jiang raised his price target on Alibaba, citing AI growth and e-commerce rebound.

Price Action: BABA stock is up 4.45% at $134.76 premarket at the last check on Tuesday.

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