Alibaba Backed Moonshot AI Upgrades Its Flagship Model, Claims to Outdo US Rival AI Models

Alibaba Group Holding Limited (NYSE:BABA) is one of the Top 15 Chinese Companies on US Exchanges.

On January 27, Bloomberg reported that Alibaba Group Holding Limited-backed Moonshot AI upgraded its flagship model, intensifying the domestic arms race ahead of DeepSeek’s expected rollout. Moonshot’s Kimi K2.5 claims to have video-generation and agentic capabilities that outperformed all three of the top U.S. AI models.

Earlier to the launch of Kimi K2.5, Alibaba revealed its latest generative AI model, Qwen3-Max-Thinking, which also claimed to have outdone its U.S. rivals on a broad benchmark test called ‘Humanity’s Last Exam.’

On January 28, Reuters reported that China has given a green signal to three of its largest tech companies to purchase Nvidia’s H200 AI chips. In an effort to ease trade tensions with the U.S., China has allowed Alibaba, ByteDance, and Tencent to buy H200 AI chips from the U.S. firm. The government has approved the purchase of over 400,000 H200 chips in total, with other tech firms joining the race for subsequent approvals, Reuters reported. This is a significant development for Chinese tech giants, which are taking major steps in AI, especially for Alibaba, which has been at the center of China’s generative AI expansion.

Alibaba Group Holding Limited (NYSE:BABA) is a leading Chinese e-commerce giant and, through its subsidiaries, operates in cloud, AI, and other businesses globally.

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Disclosure: None. This article is originally published at Insider Monkey.