Morgan Stanley: Alibaba-SW (09988) maintains a "in line with the market" rating. Its Alibaba Cloud's large language model inference costs have greatly decreased.

Morgan Stanley released a research report maintaining a "Synchronized with the market" rating for Alibaba-SW (09988). Alibaba's cloud service, Aliyun, has launched a full set of upgrades for the TongyiQwen 2.5 program, including enhancements to infrastructure, expansion of large language model (LLM) scale and wide application, as well as a reduction in LLM prices to encourage business adoption. The report mentions that Wu Yongming, Chairman and CEO of Alibaba Cloud Intelligence Group, emphasized that although artificial intelligence has developed rapidly in recent years, the development of artificial general intelligence (AGI) is still in its early stages. He stressed that the API inference cost of TongyiQwen has decreased by 97% compared to the same period last year, with the goal of further reducing inference costs. Currently, 50% of additional computational demand is driven by artificial intelligence, and industry demand has gradually evolved from being driven by central processing units (CPUs) to being driven by graphics processing units (GPUs). Looking ahead, almost all software and hardware will have inference capabilities.