(Bloomberg) — Alibaba Group Holding Ltd. (BABA) updated its video-generating model for the second time in one month as Chinese firms look to better compete against each other and American rivals in the white-hot AI race.

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Wan2.1-VACE supports video creation from inputs of various formats, including texts, images and videos, and allows users to edit the generated content, according to a company statement. Alibaba is offering VACE, or Video All-in-one Creation and Editing, in two open-source versions: a 14-billion-parameter iteration and one with 1.3 billion parameters. The Hangzhou-based company previously upgraded its video model based on the same Wan2.1 series in mid-April.

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Alibaba has been releasing AI products at a frenetic pace since going all-in on the technology after DeepSeek’s emergence on the global stage earlier this year.

The ecommerce and cloud computing leader in China rolled out its flagship Qwen AI product in late April, merely a few weeks after it released a model that can process text, pictures, audio and video — and is efficient enough to run directly on mobile phones and laptops. In March, it unveiled a new version of the AI assistant Quark app.

The release of Alibaba’s new video model came as Chinese firms are eager to match their American rivals in the space when both Washington and Beijing vow to win the race to build the most cutting-edge technologies. In late April, Beijing-based ShengShu launched a new text-to-video and image-to-video AI model that it said outperforms industry peers including OpenAI’s Sora.

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