Physix Frontier · News Briefing Card (TMTPost · Nov 5, 2026)

AI cloud market consolidates, Alibaba Cloud leads with 38.1% share

KEY FACTS

Wu Yongming said the AI cloud platform is the biggest super app of the AI era and requires full-stack capabilities to support.
China's AI cloud market reached 68.4 billion yuan in 2025, with Alibaba Cloud leading at a 38.1% share.
Alibaba plans to invest at least 380 billion yuan from 2026 to 2028 to build cloud and AI infrastructure.
Public cloud large-model invocation volume grew from 114.2 trillion to 1,944 trillion within a year.
Alibaba Cloud's AI-related revenue reached 12.4 billion yuan, up more than 150% year over year, accounting for nearly 26% of total revenue.

KEY DATA

68.4 billion yuan2025 China AI cloud market size

38.1%Alibaba Cloud AI cloud market share

at least 380 billion yuanAlibaba three-year cloud and AI investment

1,944 trillionPublic cloud large-model invocation volume (2025)

PHYSIX OBSERVATION

Cloud competition has shifted from price wars to full-stack capability, where chips, models, and compute are all indispensable, and small and mid-sized vendors are essentially out of the game. For users, cloud service price increases and token-based billing will become the norm, and choosing a cloud is essentially choosing an ecosystem. What warrants caution is whether high capital expenditure can translate into sustained profitability, a question every player still has to answer.

Source: TMTPost report