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    TECH EYE                                                              AUGUST 14, 2026      |  The Indian Eye 36

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               Alibaba Unveils Flagship AI Model  Malaysia Emerges as New AI Powerhouse

            HONG KONG:                                                          KUALA LUMPUR:

                  hinese technology giant Al-                                           alaysia is rapidly emerging
                  ibaba has launched what it                                            as one of Asia’s most sig-
            Cdescribes as its most powerful                                     Mnificant  technology  hubs,
            artificial  intelligence  model  yet,  trig-                        leveraging the global artificial intelli-
            gering a rally in its shares and signal-                            gence (AI) boom, a thriving semicon-
            ling that China’s competition with                                  ductor industry and billions of dollars
            leading U.S. AI firms is entering a new   as OpenAI and Anthropic. Analysts   in foreign investments to strengthen   The country’s long-established
            phase. Investors responded positively   believe the release reflects a broader   its position in the global digital econ-  semiconductor industry has provided
            to the announcement, pushing Aliba-  shift in the global AI landscape, with   omy. Once known primarily as a man-  a strong foundation for this trans-
            ba’s Hong Kong-listed shares higher   Chinese  firms  increasingly  focusing   ufacturing base, the country is now   formation. Malaysia currently plays
            as the company reinforced its ambi-  on high-performance, open-weight   positioning itself as a regional centre   a vital role in the global chip supply
            tions to become a global AI leader.  models that are more affordable and   for AI infrastructure, advanced chip   chain through semiconductor as-
                The newly introduced Qwen     accessible  for  developers  worldwide.  production and data centres.  sembly, testing and packaging, while
            3.8-Max is built with approximate-    Alibaba’s decision to open-source   Driven by increasing demand for   government policies are encouraging
            ly 2.4 trillion parameters, making it   the model’s weights is expected to en-  AI computing and geopolitical shifts   movement into higher-value activi-
            one of the world’s largest publicly   courage wider adoption among en-  that have encouraged companies to   ties such as chip design, AI innova-
            announced AI foundation models.   terprises and developers. Industry ex-  diversify supply chains, Malaysia has   tion and research.
            Alibaba claims the model delivers sig-  perts say this strategy could accelerate   attracted investments from global   Industry experts believe Malaysia’s
            nificant  improvements  in  reasoning,   innovation while offering a cost-effec-  technology giants including Micro-  strategic location, competitive costs and
            coding and complex problem-solving,   tive alternative to proprietary AI sys-  soft, Google, Amazon Web Services   business-friendly policies have made it
            while adopting a “mixture-of-experts”   tems developed in the United States.  and  NVIDIA.  The  southern  state   an attractive alternative for multina-
            architecture that  activates  only rele-  The announcement comes amid   of Johor has become a major desti-  tional firms seeking resilient manufac-
            vant portions of the model for each   rapidly increasing investments in AI   nation for hyperscale data centres,   turing and AI infrastructure outside
            task, improving efficiency.       infrastructure across both China and   while Penang continues to expand its   traditional markets. The nation’s digi-
                The launch underscores China’s   the United States, as governments   role as the country’s semiconductor   tal ambitions are also being supported
            determination to challenge the domi-  and technology companies compete   hub with a strong manufacturing eco-  by incentives, infrastructure expan-
            nance of American AI companies such   for leadership in generative AI.  system and skilled workforce.  sion and public-private partnerships.

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