TENCENT(HK:00700) Di Yi Cai Jing·2026-01-22 11:44Core Insights - The competition in the cloud computing market has intensified, particularly in the AI sector, with companies focusing on different metrics to highlight their advantages [1][4] - Major cloud providers like Tencent Cloud and Alibaba Cloud have reported significant growth in AI-related products and services, indicating a robust market expansion [2][4] Group 1: Market Dynamics - The cloud computing market is expected to expand significantly due to the demand driven by AI, with predictions that the incremental growth in the AI cloud market will exceed the total growth of the previous year [4] - Companies are experiencing a shift in competition from resource-based metrics to application-based solutions, emphasizing the need for innovative use cases rather than just price competition [5][6] Group 2: Company Performance - Tencent Cloud reported a doubling of orders related to AI and SaaS products, with AI model product revenue increasing over 50 times in two years [2] - Alibaba Cloud aims to capture 80% of the incremental growth in China's AI cloud market by 2026, indicating aggressive growth targets [2] Group 3: Pricing Strategies - A price war has emerged among major cloud providers, with companies like Alibaba Cloud and Tencent Cloud announcing reductions in the cost of AI models and services [5] - The focus on token consumption as a primary business model is deemed unsustainable, with a call for companies to develop applications that enhance user engagement rather than merely competing on price [5][6] Group 4: Future Outlook - The cloud market is anticipated to shift towards solving specific business problems using AI, moving away from a focus solely on resource sales [6][7] - The competitive landscape is evolving, with leading model providers narrowing the performance gap, suggesting that future competition will hinge on the ability to address real-world challenges [7]