Kai Wang, Asia senior equity analyst at Morningstar, told CNBC that large Chinese tech players such as Alibaba, which build data centers to meet the computing needs of AI in addition to building their own LLMs, are well positioned to benefit from China's post-DeepSeek AI boom.
Alibaba secured a major win for its AI business last month when it confirmed that the company was partnering with Apple to roll out AI integration for iPhones sold in China.
On Wednesday, the group also reported an expanded strategic partnership with BMW to accelerate the integration of its AI into the carmaker's next-generation intelligent vehicles.