Alibaba Cloud Leads China's AI IaaS Market with 23% Share

On July 1, a report from IDC revealed that Alibaba Cloud has secured the top position in China's AI Infrastructure as a Service (AI IaaS) market for 2024, capturing 23% of the market share. This figure not only places Alibaba Cloud at the forefront but also exceeds the combined market share of the second and third-ranked competitors. The report highlights Alibaba Cloud's dominance in the generative AI infrastructure sector, where it has achieved leadership in both model training and model inference markets.

The report underscores the rapid evolution of the generative IaaS market, with leading players consolidating their positions. Alibaba Cloud's significant market share is indicative of its robust infrastructure and technological advancements in AI. The company's leadership in both model training and inference reflects its comprehensive capabilities in supporting AI development and deployment.

The generative AI IaaS market is characterized by its reliance on specialized AI chips such as GPUs, which provide the necessary computational power. This segment includes both generative AI IaaS, which focuses on large models, and traditional non-generative AI IaaS. The rapid growth of large models has propelled generative AI IaaS to become the dominant force in the market. According to IDC, the generative AI IaaS market in China experienced a year-over-year increase of 165% in the second half of 2024, reaching 87.4 billion yuan. This surge marks the first time that generative AI IaaS has accounted for more than 70% of the overall AI IaaS market.

In 2024, the resources consumed by model training in the generative AI IaaS market were approximately 3.25 times those consumed by model inference. IDC predicts that by 2025, AI computing power will reach a turning point, transitioning from being driven by training to being driven by inference. This shift is expected to further boost the demand for AI computing power, particularly in the inference phase.

Alibaba Cloud's leadership in the AI IaaS market is a testament to its strategic investments and technological innovations. The company's ability to provide scalable and efficient AI infrastructure solutions has positioned it as a key player in the rapidly evolving AI landscape. As the demand for AI continues to grow, Alibaba Cloud's dominance in the market is likely to persist, driving further advancements in AI technology and applications.