B[Generative Artificial Intelligence Application Development Report (2026): The artificial intelligence industry ecology continues to be optimized to provide strong support for rapid development] On September 29, the Policy and International Cooperation Institute of China Internet Network Information Center released the "Generative Artificial Intelligence Application Development Report (2026)" at the "2026 (Seventh) China Internet Basic Resources Conference". The "Report" shows that China has built a world-leading artificial intelligence industry ecosystem, with three-dimensional escort on the policy side, full-stack breakthroughs on the technology side, and both quantity and quality on the financing side. First, the policy system continues to improve. China's top-level design of generative artificial intelligence continues to improve, and the policy focus has shifted from "technical research" to "scenario implementation" and "standardized governance." Taking the "Opinions of the State Council on Deepening the Implementation of the "Artificial Intelligence +" Action" as the general guide, multiple ministries and commissions worked together to intensively introduce a series of supporting policies, building a three-dimensional policy matrix covering macro strategy, industry applications, infrastructure and international cooperation. The second is to achieve breakthroughs in key technologies.
China's artificial intelligence-related underlying computing power supply continues to optimize, domestic artificial intelligence chips and computing power clusters accelerate breakthroughs; the core algorithm architecture accelerates iteration, and model reasoning capabilities and efficiency are greatly improved; the open source ecosystem is booming, and the influence of China's open source models represented by DeepSeek and Qianwen is gradually increasing. Third, the scale of financing has repeatedly hit new highs. Data show that in the first half of 2026, 1,255 artificial intelligence-related investment and financing events occurred in China, reaching 78.0% of the full year of 2025; the total amount was approximately 250.14 billion yuan, reaching 182.0% of the full year of 2025. B[CITIC Construction Investment: Meta Muse accelerates the commercialization of intelligent agents, and the Computing Conference strengthens the full-stack AI layout] On September 29, CITIC Construction Investment’s research report pointed out that Meta Muse and the Computing Conference jointly strengthened the logic of AI application implementation to drive computing power demand. Meta launched Muse, a personal AI assistant that supports email, travel reservations and transaction execution. It was downloaded 2.8 million times in the first 12 days after it was launched. Meta also promoted integration with the Shopify payment ecosystem to promote the commercialization of consumer-grade intelligence. At the Yunqi Conference, Alibaba revealed that Qwen 4 is being trained, and the subsequent model is planned to evolve to 5 trillion-10 trillion parameters; it released the Zhenwu V900 chip, proposed a goal of global data center capacity exceeding 20GW in 2032, and promoted the implementation of enterprise intelligence through Qianwen Office. We believe that the upgrade of AI from dialogue to task execution is expected to continue to increase the demand for inference, tool invocation and cloud resources, focusing on high-speed optical modules, switches, servers, liquid cooling and power supplies. B[Tsai Chongxin: AI is continuing to move from technological breakthroughs to value creation. Alibaba continues to increase the construction of full-stack AI systems] "Science and Technology Innovation Board Daily" reported on the 22nd that at the 2026 Yunqi Conference, Alibaba Group Chairman Tsai Chongxin said that AI development has entered a new stage and is continuing to shift from cutting-edge technology breakthroughs to large-scale value creation in real scenarios. At present, AI has deeply empowered core areas such as autonomous driving, embodied intelligence, and world models, effectively empowering thousands of industries and improving industrial productivity.
He revealed that Alibaba is continuing to resolutely increase the construction of its full-stack AI system and build a five-layer collaborative and complete architecture covering chips, cloud models, model services, and agent applications. This system can form a complete closed loop from underlying technology research and development to global industrial implementation, effectively promote the rapid transformation of various AI technology achievements into real industry progress, and help the deep integration of artificial intelligence into the real economy. (Kechuangban Daily reporter Huang Xinyi) B[Lyon: The rise of China’s Agentic AI, with Tencent and Alibaba as the top choice] On September 21, Lyon published a research report stating that Agentic AI is moving from experiments to enterprise workflows and becoming a new generation of infrastructure layer. Chinese AI models are rapidly narrowing the performance gap and seizing global share with cost-effectiveness; enterprises are shifting from purely pursuing model capabilities to taking into account performance, cost and deployment flexibility. Multi-model adoption will become a future trend. It is expected that ultra-large-scale cloud players in the chip, model, computing power and application layers can seize the greatest opportunities. Lyon expects that the surge in AI applications will ignite the next round of global cloud super cycle. The global public cloud market will double to US$2.3 trillion by 2028, bringing annual revenue opportunities of more than US$1 trillion. The market is more optimistic about full-stack cloud and AI providers because they can form a strong moat by combining their own chips, models, cloud infrastructure, development tools and applications. It is expected that areas such as software, video streaming, in-store services, recruitment and online travel will be relatively fragile, with Tencent and Alibaba being the first choices. The bank gave Tencent a "highly confident outperform" rating and Alibaba an "outperform" rating. B[Fulongma: Signed a 200 million yuan environmental sanitation autonomous driving technology development contract with Huawei Cloud Computing, which exclusively develops and deploys the "Folongma Environmental Sanitation Autonomous Driving System" for the company] On September 17, Fulongma (603686.SH) announced that the company signed an environmental sanitation autonomous driving technology development contract with Huawei Cloud Computing Technology Co., Ltd., with a total contract amount of 200 million yuan (tax included) and a validity period of 3 years. Based on the company's business needs, the two parties will exclusively develop and deploy the "Folongma Environmental Sanitation Autonomous Driving System" for the company based on Huawei Cloud Computing for 3-ton and 6-ton vehicle platforms, cleaning and cleaning business scenarios. This exclusive technical cooperation with Huawei Cloud, relying on its technology accumulation in the fields of artificial intelligence, autonomous driving, and embodied intelligence, combined with the company's in-depth accumulation in environmental sanitation scenarios, will help to quickly improve the company's end-to-end environmental sanitation autonomous driving system capabilities and build a full-stack technology system for intelligent sensing, decision-making and planning, and control and execution. B[China Telecom General Manager Liu Guiqing: Deepen the collaboration of computing power and strengthen the in-depth integration of computing power and the power industry in planning, construction, and operation] From September 11 to 13, the 2026 China Computing Power Conference was held in Langfang City, Hebei Province. At the main forum, Liu Guiqing, general manager of China Telecom Group Co., Ltd., said that the high-quality development of the computing industry is inseparable from industry collaboration and close cooperation among ecological parties. To this end, he put forward three initiatives: First, deepen the collaboration of computing power, strengthen the in-depth integration of computing power and the power industry in planning, construction, and operation, and jointly promote the application of new power supply models such as green power direct supply and source-grid-load storage to achieve efficient supply of diversified clean energy; second, accelerate the interconnection of computing power, and collaboratively tackle heterogeneous computing power access, global monitoring, cross-domain dispatching, Computing network integration and other key technologies will be used to jointly build a unified computing power identification and measurement transaction system to effectively serve the efficient scheduling and coordinated development of computing power across the country. The third is to improve the efficiency of domestic computing power, unite the upstream and downstream of the industry chain, accelerate the in-depth adaptation of domestic computing power and models, build full-stack optimization capabilities for Token production and distribution, and continue to improve Token output efficiency. B[Beijing: Accelerate the construction of domestic advanced computing power iterative verification platform and improve the construction capacity of 100,000-card computing power cluster] On September 9, the Beijing Municipal People's Government issued the "Beijing Digital Economy Development Plan during the 15th Five-Year Plan Period". It pointed out that we will promote the full-stack independent innovation of intelligent computing infrastructure, strengthen the innovation of RISC-V intelligent computing instruction set, deepen the construction of FlagOS open source ecosystem, and lay out the LinkeeOS intelligent operating system. Accelerate the construction of domestic advanced computing power iterative verification platform, improve the construction capacity of 100,000-card computing power cluster, and accelerate the verification of domestic technology by relying on the Beijing-Tianjin-Hebei national hub node of the national integrated computing power network. Promote the deep integration of innovative software and hardware with artificial intelligence, promote the large-scale application of innovative products in key industries, and enhance the development level of national innovative parks. B[Beijing: Accelerate the construction of fifth-generation reduced instruction set architecture (RISC-V), chip, photovoltaic and electrical integration and other innovative platforms, continue to promote the iterative evolution of new architecture products such as storage and computing integration, and focus on cultivating an independent computing industry ecosystem] On September 9, the Beijing Municipal People's Government issued the "Beijing High-Precision Industry Development Plan during the "15th Five-Year Plan" Period. It pointed out that we should adhere to the integration of the whole chain, accelerate the upgrading of the whole stack, and create a "technical base" for self-reliance and self-reliance in high-level science and technology. We will make every effort to promote chip design capabilities to the forefront of the industry, accelerate the construction of fifth-generation reduced instruction set architecture (RISC-V), chip, photovoltaic and electrical integration and other innovative platforms, continue to promote the iterative evolution of new architecture products such as integrated storage and computing, and focus on cultivating an independent computing industry ecosystem. Build the country's leading comprehensive integrated circuit manufacturing base and improve the process yield and service efficiency of mass production lines. Develop advanced packaging technology, strengthen design and manufacturing linkage, and systematically build a full-stack delivery system. Establish domestic leading electronic design automation (EDA) tools and process design kit (PDK) supporting service capabilities, and accelerate the research and development and industrialization process of characteristic processes and measurement equipment. B[Jeffrey: AI's potential reachable market exceeds 25 trillion US dollars, with Microsoft, Amazon, Alphabet, etc. being the first choices] On September 4th, Jefferies issued a report stating that the potential of artificial intelligence has only scratched the surface, estimating the potential market size to exceed 25 trillion US dollars, and evaluated key controversies such as comparisons between AI and previous technology waves, investment returns, adoption barriers, and financing risks. The bank believes that challenges still exist and believes that obstacles can be overcome, but it creates uneven paths for AI adoption. The bank believes that the "SaaS apocalypse" statement is overdone. Software is not dead, only weak software will be eliminated; cutting-edge laboratories are more likely to cooperate with leading suppliers rather than own the full stack. The bank is optimistic about companies that have advantages and can seize the spending opportunities of artificial intelligence in areas such as computing, data, security and applications. The preferred targets include Microsoft, Amazon and Alphabet among the large platforms, while Oracle and CoreWeave can provide direct exposure to restricted artificial intelligence computing. The bank is also optimistic about Snowflake and Dynatrace in the data/observability field, as well as Palo Alto Networks and Okta in the security field. Intuit is a contrarian stock pick for the bank, because compared to its approximately 40 years of data accumulation, deep artificial intelligence talent pool, and applications with strong user stickiness, the market's concerns about artificial intelligence are over-amplified.
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