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Alibaba stock rose on Monday after the China-based company previewed its new artificial-intelligence model over the weekend—and claimed it is challenging Anthropic’s powerful tools.
Alibaba American depositary receipts gained 4.9% to $120.58 on Monday after ending Friday down 2.1%.
Alibaba posted to social media on Sunday a preview of its new AI large language model, Qwen3.8 Max, which is available on the company’s coding platforms. The model can process text, images, videos, and documents.
The China-based internet giant said the LLM has 2.4 trillion parameters—a measurement for AI models that shows how much knowledge it can store. Alibaba described its new LLM as “one of the most powerful” currently available, comparable to other leading frontier AI models, and second only to Anthropic’s Fable 5.
Anthropic’s Fable 5 sits in the company’s powerful Mythos models.
The AI model news from Alibaba came on the heels of China AI start-up Moonshot launching its Kimi K3 model, which has 2.8 trillion parameters.
Chinese AI companies have been shaking up the AI model race, looking to compete with Anthropic and OpenAI. The new announcements from Alibaba and Moonshot also come as chip stocks and other AI momentum names sold off last week as investors appear to be rotating somewhat out of the AI “picks and shovels” stocks.
Citi Research analyst Alicia Yap on Monday wrote that these developments “underscore an accelerating AI race in China, where companies continuously leapfrog one another.”
“We believe the rapid iteration could foster a ‘model-agnostic’ environment, with enterprises adopting multi-model strategies to select the best model and best price for each task. This trend reduces the defensibility of any single model, shifting the competitive focus to the platforms and infrastructure that can seamlessly host and manage them,” Yap wrote.
The analyst added that in the long-term this dynamic could make Alibaba a leader in the space.
This all points to more competition in the AI model space ahead of the expected initial public offerings from Anthropic and OpenAI and investors could look to Alibaba as a way of adding LLM exposure.
Alibaba stock is down 18% this year but has risen nearly 26% this month and has battled back up above its 50-day moving average, around the $118.60 level. The stock sold off sharply in May and June but has been steadily rising since bottoming on June 26, according to chart analysis.
Write to Kit Norton at [email protected]
