Alibaba Cloud holds 42% of China’s full-stack AI cloud market: Frost & Sullivan

The concentration figure matters less than the category it measures: "full-stack" AI cloud bundles compute with model and platform layers, so a leader here is positioned at the integration point rather than just selling raw capacity. That distinction shapes who competes next — infrastructure vendors, model developers and enterprise software players all converge on the same stack. Frost & Sullivan's single-vendor lead exceeding the next three combined suggests a durable structural advantage, though one report period is thin evidence. Whether rivals narrow the gap through pricing, model partnerships or specialized offerings is the open question.