Cai Fu Zai Xian·2025-10-27 05:11Core Insights - The report by Frost & Sullivan indicates that the Chinese full-stack AI cloud service market is projected to reach 25.9 billion yuan in the first half of 2025, with Alibaba Cloud holding a 30.2% market share and Baidu Smart Cloud at 22.5%, together surpassing 50% market share, establishing a duopoly in the AI cloud sector [1][3][4] Market Dynamics - The competition in AI cloud services has entered an "ecosystem war" phase, requiring cloud vendors to integrate services at different levels and build a triad model of IaaS, PaaS, and MaaS to enhance competitive capabilities [3][4] - High investment in AI strategies by Baidu and Alibaba has led to significant returns, as evidenced by their consistent top rankings in various third-party research reports [3][4] Company Strategies - Baidu and Alibaba have been early adopters of AI application transformation, with Baidu aiming to revamp all its products using AI and Alibaba pushing for comprehensive "AIification" of its existing business [4][5] - Both companies have adopted a full-stack approach to AI cloud services, creating a self-research closed loop from chips and computing power to models and applications [4][5] Financial Performance - In the first half of 2025, Baidu's AI new business revenue reached 19.4 billion yuan, marking a 36% year-on-year growth, the highest among cloud vendors, while Alibaba Cloud's revenue grew by 22% [5] External Collaborations - Baidu and Alibaba have been increasingly visible in external collaborations, including joint advertising efforts and partnerships with Apple for AI technology support, which may lead to significant market opportunities by the end of 2025 [6][8]