Following the announcement of a new artificial intelligence model, Alibaba shares surged sharply by 7.5%, marking the best daily performance in two weeks. The company witnessed its strongest increase in recent weeks, largely driven by the new artificial intelligence model’s performance. Alibaba introduced the QwQ-32B model, claiming it performs as well as DeepSeek but uses approximately 5% of the parameters utilized by the R1 model of DeepSeek’s previous version. Subsequently, Alibaba shares recorded an approximately 7.5% increase, marking the highest daily rise in nearly two weeks. The tech company’s market value has soared by around $135 billion this year. Analysts noted that Alibaba is now at the forefront of the artificial intelligence sector. Despite facing tough times due to pressure from the Beijing government and decreased consumption post the COVID-19 pandemic, Alibaba managed to attract attention again with the artificial intelligence rally. Alongside investments in artificial intelligence, Alibaba also began regaining the support of the Beijing government. The company had announced a plan to invest over 380 billion yuan (52 billion dollars) in artificial intelligence infrastructure within the next three years.