Alibaba Prepares to Launch Qwen 3 as Domestic and Global AI Race Heats Up

Alibaba Group is preparing to launch Qwen 3, the next iteration of its flagship AI model, as early as this month, according to a Bloomberg report citing sources familiar with the matter.

While the exact timing remains fluid, the move underscores Alibaba’s determination to keep pace in the intensifying AI race, both within China and on the global stage.

This development comes as competition in artificial intelligence reaches a fever pitch, fueled by the disruptive entrance of DeepSeek, a Chinese AI company that has rapidly emerged as a formidable challenger to both Western tech giants and China’s established AI players.

Alibaba has been among the most aggressive Chinese tech firms in rolling out new AI models. Since committing fully to AI development in early 2025, the company has launched multiple new products at an accelerated pace.

Just last week, Alibaba introduced a new Qwen 2.5 series model, capable of processing text, images, audio, and video, with optimizations that allow it to run efficiently on mobile devices and laptops.

In March, Alibaba also updated its AI-powered Quark assistant, further strengthening its position as a leader in China’s AI ecosystem.

With Qwen 3, Alibaba is signaling that it intends to remain at the forefront of China’s AI push. However, it is not just about competition within China—the battle for AI dominance is also geopolitical, as China and the US jostle to lead the next wave of AI advancements.

DeepSeek’s Rise and the Global AI Race

The AI landscape shifted dramatically in early 2025 when DeepSeek unveiled DeepSeek-V3, a model that took the industry by surprise. Marketed as being developed at a fraction of the cost of its Western counterparts—reportedly for just about $6 million—DeepSeek-V3 outperformed several well-established models, triggering a new wave of urgency among AI firms.

DeepSeek’s success forced companies across China and the United States to accelerate their AI strategies. In response, OpenAI, Google, and Anthropic rushed out new models in the first quarter of the year, while Chinese firms, including Alibaba, intensified their AI expansion plans.

Alibaba reacted swiftly to DeepSeek’s rise, launching Qwen 2.5-Max just days after DeepSeek-V3’s release. In an unusual move, Alibaba unveiled Qwen 2.5-Max on the first day of China’s Lunar New Year holiday, a time when most businesses are shut down. The timing underscored the pressure DeepSeek has placed on its rivals, forcing them to make drastic adjustments to their AI rollouts.

DeepSeek’s rapid progress has not only disrupted China’s AI market but has also prompted fears among US tech firms that they may lose ground in the global AI race.

China vs. US’ Race to AI Supremacy

The unveiling of DeepSeek earlier this year has stimulated a fresh AI race, both in China and the US. While companies are scrambling to maintain their positions within their respective domestic markets, the broader contest is between two global superpowers—China and the US—each seeking to establish itself as the leader in AI innovation.

In the US, OpenAI, Microsoft, and Google have all been forced to accelerate their AI roadmaps in response to China’s advancements. OpenAI recently announced the release of a more “open” AI model that mimics human reasoning, a direct response to the growing popularity of open-source AI systems in China.

Meanwhile, in China, tech giants Alibaba, Tencent, and Baidu are in fierce competition to capture domestic market dominance while simultaneously challenging US firms on the global stage.

With Alibaba preparing to launch Qwen 3 and DeepSeek planning to release its next-generation model before May, the AI race is set to enter a new phase. The battle for AI supremacy is no longer just about individual companies—it is about national competitiveness.