When Chinese AI firm DeepSeek unveiled its high-performance, low-cost models in January, the shockwaves reverberated through Alibaba's headquarters. The tech giant's leadership responded with unprecedented urgency—canceling engineers' Spring Festival holidays and mandating round-the-clock development sessions.

At the Paris VivaTech conference, Alibaba Chairman Cai Hongxin revealed how the company mobilized after DeepSeek's R1 model launch. "We realized we were falling behind," Cai admitted. Engineering teams were instructed to remain in offices throughout the holiday period, with some even sleeping at workstations to accelerate progress.

The intensive effort yielded results within weeks. Alibaba debuted its Qwen model series, which Cai described as "highly competitive" in performance benchmarks. This rapid response highlights both Alibaba's technical capabilities and the cutthroat nature of China's AI sector.

Spring Festival typically marks China's most important family reunion period. This year's celebrations from late January to early February became a working marathon for Alibaba's AI teams. The sacrifice underscores how seriously Chinese tech firms take the global AI race.

Alibaba has since doubled down on artificial intelligence, announcing plans to invest 380 billion yuan ($53 billion) over three years in AI infrastructure including data centers. The company also shifted strategic focus toward AI and artificial general intelligence (AGI) development.

Earlier this year, Alibaba secured a notable partnership with Apple to provide AI technology for iPhones—a deal that attracted attention from U.S. officials monitoring China's growing influence in critical technologies.

Key Points

1. Alibaba engineers worked through Spring Festival holidays to accelerate AI development
2. The push came after rival DeepSeek launched competitive R1 models
3. Company developed Qwen model series within weeks of mobilization
4. Alibaba plans $53 billion investment in AI infrastructure over three years
5. Partnership with Apple highlights China's growing role in global AI ecosystem