Core Insights - The article highlights that AI giants like Google and Alibaba have successfully established a commercial closed loop from computing power investment, model training to application monetization, and both companies plan to significantly increase capital expenditures to strengthen their competitive advantages [1][2] Group 1: International Perspective - Google has recently launched several new products, creating a continuous cycle of computing power investment, training large models, supporting AI applications, and increasing AI revenue through token consumption, which enhances its competitive edge [2] - The vertical integration advantage of Google in computing power, models, and applications is expected to accelerate the clarity of AI application business models and establish sustainable profit models, significantly improving market valuation certainty for the AI sector [2] Group 2: Domestic Perspective - Alibaba reported a revenue of 247.795 billion RMB for Q2 of fiscal year 2026, a 5% year-on-year increase, driven by strong AI demand, with its cloud intelligence group revenue growing 34% year-on-year, exceeding market expectations [3] - The new Qianwen App has surpassed 10 million downloads within a week of public testing, becoming the fastest-growing AI application to date, while Alibaba's capital expenditure for the quarter reached 31.5 billion RMB, totaling approximately 120 billion RMB over the past four quarters [3] Group 3: New Investment Logic in Optical Interconnection Supply Chain - Google and Alibaba's full-stack capabilities in the AI industry are driving new demand for TPU and AI ASIC chips, as customized computing clusters require enhanced networking capabilities [4] - Google's capital expenditure guidance for 2025 has been raised to 91-93 billion USD, while Alibaba is still in the "investment phase" and may revise its previously stated three-year capital expenditure guidance of 380 billion RMB upwards [4] Group 4: Opportunities in Computing Power Solutions - The demand for computing power in the AI sector remains robust, with the infrastructure market still in a phase of rapid expansion, indicating that it has not yet reached a saturation point [5] - Companies involved in the optical interconnection supply chain, such as Dekor, Tengjing Technology, and others, are recommended for investment due to their deep involvement in the new technology supply chain [5]