(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.