Alibaba Cloud held a 42% share of China's full-stack AI cloud-services market in the first half of 2026, ranking first and more than double the combined share of the second- through fourth-place vendors, according to a Frost & Sullivan report released on October 28.
The report put the first-half China full-stack AI cloud market at 58.13 billion yuan, up 123.8% year on year, with Volcano Engine, Baidu AI Cloud, Tencent Cloud and SenseTime rounding out the top five.
Frost & Sullivan noted that inference demand has replaced training as the primary driver of compute growth, and that the industry is moving from a 'resource race' into an 'efficiency and ecosystem race' in which full-stack capability has become the decisive competitive factor.
The data underscores how quickly China's AI-cloud market is compounding as enterprises shift from experimentation to production-scale deployment.
Source: Frost & Sullivan / Daily AI Morning (paraphrased and translated from Chinese financial-media reporting; reprinted for informational purposes with attribution).
