Alibaba Cloud on Thursday launched QwQ-32B, a compact reasoning model built on its latest large language model (LLM), Qwen2.5-32b, one it says delivers performance comparable to other large cutting edge models, including Chinese rival DeepSeek and OpenAI’s o1, with only 32 billion parameters.

Alibaba has unveiled a new open-source AI reasoning model, the QwQ-32B, which it claims outperforms DeepSeek's R1 and OpenAI 's o1-mini. Despite having just 32 billion parameters versus R1's 671 billion, QwQ-32B has demonstrated better performance in math, coding and general problem-solving.

Shares of Chinese tech giant Alibaba surged after revealing a new reasoning model it claims can rival DeepSeek’s global blockbuster R1.