Core Insights - Alibaba Cloud leads the AI IaaS market in 2024 with a market share of 23%, surpassing the combined shares of the second and third-ranked competitors [1] - Huawei Cloud ranks second with a 10% share, while Volcano Engine holds third place with 9% [1] - The report marks IDC's first statistical analysis specifically focused on AI IaaS [1] Market Share Comparison - In the second half of 2023, Alibaba Cloud held a 27.1% share, followed by Huawei Cloud at 13.5%, China Telecom at 12.9%, Tencent Cloud at 8.7%, and China Mobile at 8.6%, totaling 70.8% for the top five [1] - Tencent Cloud and China Telecom experienced a decline in rankings, while Volcano Engine entered the top five [1] AI IaaS Market Definition - The intelligent computing infrastructure service market includes IaaS services supported by AI-specific chips like GPU, FPGA, and ASIC, catering to both generative and non-generative AI scenarios [3] Generative AI IaaS Growth - The generative AI IaaS market in China is expected to grow by 165% year-on-year in the second half of 2024, reaching 8.74 billion yuan, accounting for over 70% of the overall AI IaaS market [4] - Alibaba Cloud leads in both model training and inference within the generative AI IaaS market [4] Future Projections - The demand for AI computing resources is projected to shift from training to inference by 2025, driven by the emergence of popular large models [4] - Major clients in sectors like internet, telecommunications, and autonomous driving are actively testing and deploying domestic computing resources to address computing gaps [4] Investment Trends - Alibaba plans to significantly increase investments in AI infrastructure over the next three years, exceeding the total of the past decade [5] - Tencent's annual capital expenditure for 2024 is projected to reach $10.7 billion, approximately 12% of its revenue, with plans for further increases in AI-related spending [5]