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Alibaba’s AI Reasoning Model Drives Shares Higher

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Alibaba Group’s Hong Kong-listed shares surged by more than 8% on Thursday following the release of its new artificial intelligence (AI) reasoning model, QwQ-32B. The company claims that the model, with 32 billion parameters, delivers performance comparable to global AI hits like DeepSeek’s R1, which has 671 billion parameters.

The announcement was made through Alibaba’s AI unit on X, the platform formerly known as Twitter, where the company highlighted the QwQ-32B’s abilities in areas such as mathematical reasoning, coding, and general problem-solving. The model was put to the test in benchmark evaluations, performing on par with top AI models like OpenAI’s o1 mini and DeepSeek’s R1.

Alibaba’s new model is accessible via its chatbot service, Qwen Chat, where users can choose from a variety of Qwen models, including the powerful Qwen2.5-Max. The launch comes at a time when the Chinese government is increasing its support for industries, including artificial intelligence, humanoid robots, and 6G telecom.

DeepSeek, which has emerged as a key player in China’s AI landscape, continues to compete with global AI giants like OpenAI, offering models that rival the performance of more expensive alternatives with fewer computing resources.

In addition to Alibaba’s advancements, another AI release attracting attention was the introduction of Manus, an AI agent developed by the Chinese startup Monica. Manus, which outperformed OpenAI’s Deep Research in benchmarks for AI assistants, can help users with tasks such as travel planning and insurance comparisons. Currently by invitation only, a video showcasing Manus has gained significant interest, with over 280,000 views as of Thursday.

Singapore Charges Three Men in Connection with Fraud Against Dell and Super Micro

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Singaporean authorities have added additional charges against three men involved in a larger investigation into server fraud, which may involve AI chips. The charges are related to fraudulent activities committed against tech companies Dell and Super Micro. According to court documents, the men allegedly misrepresented the destinations of the servers they purchased, falsely claiming that the servers would not be transferred to unauthorized third parties.

The police charge sheets indicated that the defendants made false representations regarding the ultimate consignee of the items, suggesting that they would not be diverted. Investigations revealed that the servers may contain Nvidia chips, though authorities have not confirmed if these chips are subject to U.S. export controls.

This case is part of an ongoing investigation in Singapore, which involves 22 individuals and companies accused of making false representations. Additionally, the United States is investigating whether DeepSeek, a Chinese company behind a highly publicized AI model, has been using U.S. chips prohibited from being sold to China.

The investigation also covers Malaysia, where the servers allegedly ended up, and authorities there are exploring whether any local laws were violated. Singapore has so far charged two suspects, Aaron Woon, 41, and Alan Wei, 49, with conspiring to defraud Super Micro in 2024. Their charges have been amended to include fraud against Dell. A third suspect, Chinese national Li Ming, 51, was also charged with defrauding Super Micro in 2023.

Authorities seized 42 devices, including phones, computers, and laptops, which are being analyzed by forensic experts. The investigation is still in its early stages, with prosecutors seeking bank statements to trace the movement of funds and planning to work with international law enforcement.

Malaysia Investigates Server Shipments Tied to Singapore Fraud Case

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Malaysia has launched an investigation into whether local laws were violated in the shipment of servers linked to a fraud case in Singapore, as the equipment may have contained advanced artificial intelligence (AI) chips subject to U.S. export restrictions.

The case, which surfaced late last month, led Singaporean authorities to charge three men with fraud. Reports suggest the case involves the transfer of Nvidia AI chips to Chinese AI company DeepSeek. Singapore stated that the servers, supplied by U.S. firms, were shipped to Malaysia and may have contained Nvidia chips. However, it has not clarified whether these components fall under U.S. export controls.

Malaysia’s trade ministry issued a statement confirming that the government is taking “necessary actions” to determine if any Malaysian laws were breached regarding the shipment of U.S.-sanctioned AI chips. It further emphasized ongoing collaboration with both the United States and Singapore to develop effective measures for addressing trade compliance issues involving restricted technology.

Meanwhile, U.S. authorities are investigating whether DeepSeek has been using restricted American-made chips to develop its AI models. The Chinese firm’s advancements in AI have drawn significant global attention, particularly after its model’s performance made headlines in January.