Alibaba (BABA) is stepping up its efforts in the AI race. The company has launched an upgraded version of its AI assistant app, Quark, now powered by its advanced QwQ-32B reasoning model. This move comes as competition in the AI space intensifies, especially after Chinese startup DeepSeek disrupted the market with its powerful R1 model.
The updated Quark app now combines chatbot functions, advanced reasoning, and task execution in one platform. The new version is being released gradually, starting with a pilot that was launched on Thursday. With these upgrades, Alibaba is working to stay competitive and expand its presence in the AI space.
Alibaba’s New AI Model QwQ-32B to Rival DeepSeek
At the center of this upgrade is Alibaba’s latest AI model, QwQ-32B. While it is smaller than DeepSeek’s R1, it delivers strong performance in tasks like math, coding, and logic. According to Alibaba, the model can match other advanced reasoning systems while using fewer resources.
The company also introduced another model, R1-Omni, which can interpret emotions. It is available for free on Hugging Face, giving users open access to explore its features.
Alibaba Bets Big on AI and Cloud Computing
Beyond these new launches, Alibaba is making huge investments in future technology. The company recently announced plans to invest 380 billion yuan ($52.5 billion) in AI and cloud computing over the next three years. This significant investment reflects China’s ambition to outpace the U.S. in AI innovation.
So far in 2025, BABA stock has climbed nearly 62%, driven by excitement around faster AI development. Also, Alibaba’s partnership with Apple (AAPL) and strong Q3 FY25 results have fueled investor confidence.
Is Alibaba a Good Stock to Buy Now?
On TipRanks, BABA stock commands a Strong Buy consensus rating based on 16 unanimous Buy ratings. The average Alibaba stock price target of $165.61 implies 20.76% upside potential from current levels.
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