Alibaba shares rally after unveiling its ‘most powerful’ AI model as U.S.-China competition heats up

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Alibaba unveiled on Monday its latest AI model, Qwen3.8-Max, described as the most powerful in the Qwen family, featuring 2.4 trillion parameters and a context window of up to 1 million tokens. The company’s New York-listed shares rose 4.5% in premarket trading, while shares gained 7% on the Hong Kong exchange. The model delivers comparable or sometimes better scores than Anthropic’s Claude 5 across benchmarks, ranking second in Vision Arena and fifth in Text Arena. Qwen3.8-Max can code highly autonomously for weeks with little human input, as demonstrated by an internal test where it spent 16 days developing a coding tool. The launch comes as domestic rival Moonshot AI recently released Kimi K3 with 2.8 trillion parameters.

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