AI News, January 29th, 2025

Here are the latest developments in AI technology as of January 29, 2025:

1. Alibaba Unveils Advanced AI Model Qwen 2.5 Max:
   • Alibaba has introduced Qwen 2.5 Max, an AI model that reportedly surpasses existing models from DeepSeek, OpenAI, and Meta Platforms in certain benchmark tests. This announcement led to a 3% increase in Alibaba's U.S.-listed shares, while shares of competitors like Meta and Microsoft experienced slight declines. The release of Qwen 2.5 Max follows recent market disruptions caused by DeepSeek's cost-effective AI model, which significantly impacted U.S. tech stocks, including a nearly 5% drop in Nvidia's shares. investopedia.com
2. U.S. Navy Prohibits Use of DeepSeek AI App Among Personnel:
   • The U.S. Navy has banned its members from using the Chinese-developed AI chatbot, DeepSeek, due to security and ethical concerns. Experts warn that the app could store sensitive user data accessible to the Chinese government, posing national security risks similar to previous concerns surrounding TikTok. Despite DeepSeek's rapid popularity and its competitive edge over Western counterparts, the U.S. military is exercising caution to prevent potential data breaches. nypost.com
3. DeepSeek's Emergence Challenges U.S. AI Dominance:
   • The unexpected rise of Chinese AI startup DeepSeek has disrupted U.S. efforts to maintain technological superiority in artificial intelligence. DeepSeek's AI model, R1, rivals American counterparts at a fraction of the cost, leading to significant market impacts, including a $1 trillion loss in value for companies like Nvidia. This development has prompted the U.S. to reassess its tech strategy, considering stricter policies or alternative approaches to sustain its leadership in AI while addressing economic and security implications.