Chinese AI Firms Step Up Model Releases a Year After DeepSeek

Beijing: Chinese technology companies are accelerating the release of new artificial intelligence models, intensifying competition with US rivals as domestic firms focus on lower costs, faster rollouts and broader user adoption.

The renewed push comes just over a year after the release of DeepSeek, a China-made AI chatbot that drew global attention for offering significantly lower usage fees than leading US products, raising questions about the impact of US technology restrictions on China.

On Tuesday, Beijing-based startup Moonshot AI unveiled its latest model, Kimi K2.5, claiming improvements in video generation and so-called agentic capabilities. The release follows the launch of Moonshot’s K2 model roughly three months earlier.

Earlier in the day, Alibaba Group announced a new generative AI model under its Qwen series, capable of producing text, images and video. Alibaba said the model can automatically select tools for different tasks and draw on previous user interactions to improve response efficiency at low additional cost.

The company said the model performed strongly in benchmark testing, as Chinese firms continue to highlight performance gains alongside cost advantages.

Last week, Z.ai released a free version of its GLM 4.7 model but later limited new sign-ups for its AI coding tool after demand strained available computing resources.

Shares of Baidu rose last week following the release of its latest generative AI model, Ernie 5.0. Baidu said the model outperformed earlier versions from global competitors on selected measures.

Industry analysts say Chinese companies are increasingly prioritising rapid deployment and ecosystem integration over headline benchmark leadership. Many Chinese AI models are open-sourced or offered at low cost, a strategy aimed at driving adoption in emerging markets.

Microsoft has cited estimates suggesting usage of DeepSeek-related technologies in Africa exceeds that in other regions, underscoring growing overseas uptake of Chinese AI products.

Chinese tech firms are also promoting AI adoption through consumer incentives and integration with existing platforms. Companies including Tencent, Baidu and Alibaba have launched AI-related promotions ahead of the Lunar New Year to boost user engagement.

Analysts say the focus on user growth and platform integration could help companies offset the high costs of developing and operating large AI models, even as competition with US firms continues to intensify.