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.

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

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.