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<Research>CMSI: Alibaba Cloud In-house Chip Progress Beats; Certainty of High Growth in AI Cloud Revenue Heightens
Alibaba Cloud Summit 2026 was held yesterday (20th), focusing on full-stack technology upgrades in the Agentic era and announcing four major initiatives, CMSI said in its report. T...
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<Research>CMSI: Alibaba Cloud In-house Chip Progress Beats; Certainty of High Growth in AI Cloud Revenue Heightens
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Alibaba Cloud Summit 2026 was held yesterday (20th), focusing on full-stack technology upgrades in the Agentic era and announcing four major initiatives, CMSI said in its report.

The four initiatives are (1) Infrastructure: T-Head unveiled its new-generation Zhenwu M890 training-inference integrated AI chip and the 128-card supernode server Panjiu AL128, which has been connected to the Bailian platform. The company also disclosed its chip iteration roadmap: Zhenwu V900 and Zhenwu J900, accelerating its upgrade cycle from once every two years to once per year.

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(2) Model capabilities: the flagship Qwen3.7-Max ranked first among domestic models in global blind tests on Arena, surpassing Kimi-K2.6, DeepSeek-v4-pro and GLM-5.1. Its coding, reasoning and long-horizon task capabilities improved impressively, enabling autonomous completion of complex tasks lasting up to 35 hours.

(3) Qianwen Cloud platform: For the first time among domestic cloud vendors, Alibaba Cloud completed a full-stack Agent upgrade across chip-cloud-model-inference. Traditional cloud products were transformed with Skill-based, MCP-based and CLI-based to match the irregular elasticity, short lifecycle and instantaneous surge characteristics of Agent workloads.

(4) Ecosystem openness: The Bailian platform has partnered with leading large-model companies including MINIMAX-W (00100.HK)  +3.000 (+0.358%)    Short selling $236.78M; Ratio 5.101%   , Kimi, SENSETIME-W (00020.HK)  0.000 (0.000%)    Short selling $416.03M; Ratio 34.115%   , KNOWLEDGE ATLAS (02513.HK)  -23.000 (-1.422%)    Short selling $435.71M; Ratio 8.402%   and StepFun.

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CMSI maintained its Overweight rating and USD188 TP on Alibaba Group Holding Limited (BABA.US)      . The broker believed Alibaba Cloud's full-stack Agent upgrade is a critical strategic move. The trinity - accelerated in-house chip iteration + MaaS platform ecosystem + Agent-native system - forms a deep moat, strengthening the certainty of high growth in AI cloud revenue.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-29 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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