April 29 (Reuters) - Chinese tech giant Alibaba Group ( BABA )

launched Qwen 3 on Tuesday, an upgraded version of its

flagship artificial intelligence model that introduces new

hybrid reasoning capabilities.

The launch comes as competition in China's AI sector

intensifies, spurred by the breakout success of local startup

DeepSeek earlier this year, which claimed to have built

high-performing models at lower costs than their Western

counterparts.

Chinese search leader Baidu ( BIDU ) joined the AI arms

race last Friday with the release of its Ernie 4.5 Turbo and

reasoning-focused Ernie X1 Turbo models.

Alibaba's ( BABA ) newest release merges conventional AI functions

with advanced dynamic reasoning, creating what the company calls

a more adaptable and efficient platform for app and software

developers.

The e-commerce giant had previously rushed out its Qwen

2.5-Max model in late January, just days after DeepSeek's

announcement, claiming superior performance.