Alibaba-backed Moonshot AI improves on its flagship model, claims it outperforms rival AI models in the US


Alibaba Group Holding Limited (NYSE:baby) is one of the Top 15 Chinese companies on US stock markets.

On January 27, Bloomberg reported that Moonshot AI, backed by Alibaba Group Holding Limited, updated its flagship model, intensifying the domestic arms race ahead of DeepSeek’s expected launch. Moonshot’s Kimi K2.5 claims to have video generation capabilities and agents that surpassed the top three US AI models.

Alibaba-backed Moonshot AI improves on its flagship model, claims it outperforms rival AI models in the US
Alibaba-backed Moonshot AI improves on its flagship model, claims it outperforms rival AI models in the US

Christopher Penler / Shutterstock.com

Ahead of the Kimi K2.5 launch, Alibaba revealed its latest generative AI model, Qwen3-Max-Thinking, which it also claimed to have outperformed its American rivals in an extensive benchmark test called “Humanity’s Last Test.”

On January 28, Reuters reported that China gave the green light to three of its biggest technology companies to buy Nvidia’s H200 AI chips. In an effort to ease trade tensions with the US, China has allowed Alibaba, ByteDance and Tencent to buy H200 AI chips from the US company. The government has approved the purchase of more than 400,000 H200 chips in total, and other technology companies are joining the race for further approvals, Reuters reported. This is an important development for Chinese tech giants, which are making big strides 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.

While we recognize BABA’s potential as an investment, we believe that certain AI stocks offer greater upside potential and less downside risk. If you’re looking for an extremely undervalued AI stock that will also benefit significantly from Trump-era tariffs and the onshoring trend, check out our free report on the best short term AI stock.

READ THE FOLLOWING: The 10 Best New Penny Stocks to Invest i 13 Best Gold Mining Companies to Invest Now.

Disclosure: no. This article is originally published in Monkey Insider.



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