The capex logic of Tencent and Alibaba AI is different
Tencent and Alibaba have significant differences in the logic of AI capital expenditure (capex). Tencent focuses more on the return on investment (ROI) of applications, while Alibaba follows the logic of cloud computing vendors, investing as long as the depreciation is reasonable. The two represent different business model directions, showing that Chinese companies are no longer followers in the field of AI exploration. In the future, the voices of Chinese companies in the AI narrative will become increasingly prominent
The statements about the applications have been made, proving that Tencent and Alibaba's capex logic is different.
Tencent will consider the ROI of its applications like Meta before investing in capex, while Alibaba follows the authentic cloud factory logic, investing as long as the depreciation can be accounted for.
The two companies also represent different directions in business models, but in the exploration of AI frontiers, Chinese manufacturers are no longer followers. In AI narratives, Chinese manufacturers will have an increasingly louder voice.
A comparison chart of 5 companies' AI capex using Gemini has been created, highlighting similarities and differences. Discussion is welcome. (Source: Hard AI)
