From CNBC:



A report released by tech market analysis firm Canalys on Wednesday revealed that the Chinese cloud services market is experiencing slow growth, with 10% growth in 2022 and an expected 12% growth in 2023, a sharp decrease from the 45% surge in 2021. The three largest cloud players in China, Alibaba, Huawei, and Tencent, held the same market share in the third quarter as they did in the prior one. Domestic spending on cloud services grew by 18% year-on-year in the third quarter to $9.2 billion but slowed drastically to 5.7% from 13% in the second quarter.

The industry has heavily invested in AI and is looking to monetize AI offerings via the development of partner ecosystems, including a network of developers, software companies, and experts. However, this investment has yet to translate into meaningful growth for the cloud segment. Alibaba, Huawei, Tencent, Baidu, and other companies in China have released AI models and products this year, showing that the industry is still investing in AI despite the slow growth in cloud services.

In conclusion, the Chinese cloud services market remains conservative, with slow growth despite heavy investment in AI and the development of partner ecosystems. The report suggests that the innate complexity of AI technology presents challenges in terms of adoption and deployment but also unlocks opportunities for a broader AI ecosystem.



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