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Entertainment

Secret sauce behind Alibaba’s animation studio

by Chief Editor
written by Chief Editor

Alibaba and the New Battleground for Global Entertainment: Data, AI, and the China Factor

Alibaba is increasingly focused on understanding what global audiences *seek* to watch, not just what its creators *want* to build. This data-driven approach, coupled with advancements in AI, is reshaping the entertainment landscape, both within China, and internationally.

The Power of User Data in Content Creation

Alibaba’s Youku platform, with roughly 170 million users, is at the forefront of this shift. Huiyu Xu, an executive producer for Youku’s popular animated series “Cang Yuan Tu,” emphasized that content decisions are now heavily influenced by user data. Rather than relying on creative intuition alone, the platform analyzes what resonates with its audience to guide production.

This contrasts with traditional Hollywood approaches, where a director’s vision often takes precedence. The success of “Cang Yuan Tu,” which originated as an online novel garnering 5 million reader recommendations, demonstrates the potential of tapping into existing audience demand.

The team behind Youku’s “Cang Yuan Tu” animated series kick off the third season in Beijing on March 12, 2026.

CNBC | Evelyn Cheng

“Cang Yuan Tu”: A Case Study in Data-Driven Success

Since its debut in 2023, “Cang Yuan Tu” has amassed over 9.9 million followers in China, making it Youku’s most popular show. The series, a fantasy martial arts story, is available on Youku’s streaming platform for 25 yuan ($3.62) a month. A movie adaptation is planned for summer 2027.

Youku is continually raising the production quality of “Cang Yuan Tu” to meet increasing viewer expectations, investing in more detailed animation and skilled artists. Xu noted the improvements are significant, nearing the quality of Disney animated films.

Hollywood’s Continued Interest in the Chinese Market

Despite challenges like censorship and import restrictions, China remains a crucial market for Hollywood. Disney’s “Zootopia 2” generated approximately one-third of its $1.87 billion global box office revenue from China, becoming the top-grossing Hollywood film in the country.

A24, known for its auteur-driven films, is similarly testing the waters with “Marty Supreme,” bringing its highest-grossing movie to China this month. Actor Timothee Chalamet’s promotional efforts, including a ping-pong match and street food service documented on Xiaohongshu, highlight the lengths studios are going to engage Chinese audiences. However, initial box office takings were just over 3 million yuan ($440,000).

Actor Timothee Chalamet, right and American filmmaker Joshua Safdie attend the premiere of film “Marty Supreme” on March 10, 2026 in Beijing, China.

Visual China Group | Getty Images

Expanding Beyond China: A Global Ambition

Youku isn’t alone in its global ambitions. Other Chinese animation and entertainment companies are also looking to expand internationally. “Cang Yuan Tu” is gaining traction in Thailand and Vietnam, and Youku operates an international streaming platform and a YouTube channel with 1.27 million subscribers for animation content, offering full episodes with subtitles for $3.99 a month.

Youku is planning future animated content with urban and futuristic settings, aiming for broader international appeal. The company anticipates the impact of artificial intelligence, particularly on special effects teams, within the next year or two.

A24 has reportedly launched an AI lab, and quietly opened its first movie merchandise store in mainland China – inside Alibaba’s new Beijing offices.

The Broader Context: U.S.-China Tech Dynamics

Recent developments highlight the ongoing complexities of the U.S.-China relationship. Both sides reached “new consensus” in Paris, according to China’s Commerce Ministry, despite a delay in a planned trip to Beijing by former President Trump. Alibaba recently disclosed a 34% drop in headcount, reflecting a shift towards AI, while Tencent saw a modest increase in its workforce.

U.S. Prosecutors have charged Super Micro Computer employees with smuggling Nvidia chips to China.

Key Dates to Watch

March 24 – 27: China’s Bo’ao Forum for Asia

March 25: PDD Holdings to release earnings

March 25 – 29: China’s Zhongguancun state-organized tech forum in Beijing

March 27: China industrial profits for January and February

FAQ

Q: What is the significance of Alibaba’s focus on user data?

A: It represents a shift from creator-driven content to audience-driven content, increasing the likelihood of success by catering to existing demand.

Q: Is Hollywood losing ground to Chinese entertainment companies?

A: Not necessarily, but Chinese companies are becoming increasingly competitive, leveraging data and technology to create high-quality content with global appeal.

Q: What role does AI play in this evolving landscape?

A: AI is expected to impact production processes, particularly in areas like special effects, and is being explored by companies like A24 for potential creative applications.

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Tech

Tencent FY Q4 revenue beats estimates amid ramp up in AI investments

by Chief Editor
written by Chief Editor

Tencent’s AI and Gaming Surge: A Look at Future Trends

Tencent Holdings is solidifying its position as a tech giant, fueled by a potent combination of gaming prowess and rapidly expanding artificial intelligence (AI) capabilities. Recent earnings reports reveal a 13% increase in fourth-quarter revenue, surpassing analyst expectations and signaling a strong trajectory for the company.

The Gaming Engine Continues to Roar

Gaming remains the cornerstone of Tencent’s success. Domestic game revenues climbed 18% year-on-year to 164.2 billion Chinese yuan, driven by popular titles like “Delta Force” and established hits. Internationally, gaming revenue exceeded $10 billion for the first time, reaching 77.4 billion Chinese yuan. This demonstrates Tencent’s growing global reach and ability to capture diverse gaming markets.

The success isn’t limited to existing franchises. Newer titles are contributing significantly, alongside established hits like “Honor of Kings” and “Peacekeeper Elite”. This blend of innovation and proven performance positions Tencent well for continued growth in the competitive gaming landscape.

AI: The Recent Growth Driver

While gaming provides a robust foundation, Tencent is strategically investing heavily in AI to unlock new revenue streams and enhance existing services. The company spent 18 billion Chinese yuan on AI products in 2025 and plans to double that investment this year. This commitment underscores the importance of AI in Tencent’s future strategy.

AI is being integrated across Tencent’s ecosystem, including its WeChat messaging and payment app, cloud services and gaming experiences. AI-enhanced ad targeting is already boosting online advertising revenue, which rose 17% to 41.1 billion yuan. The hiring of former OpenAI researcher Yao Shunyu to lead the development of its Hunyuan large language model further demonstrates this commitment.

Cloud Expansion and Fintech Growth

Beyond gaming and AI, Tencent is actively diversifying its portfolio. Fintech and business services revenues increased by 8% year-on-year to 229.4 billion Chinese yuan. The company is as well pursuing expansion in cloud computing, with plans to grow its presence in Europe and the Middle East.

Although Tencent doesn’t break out cloud revenue separately, the overall growth in the Fintech and Business Services segment indicates a positive trend. This diversification strategy aims to reduce reliance on gaming and capitalize on emerging opportunities in the digital economy.

What’s Next for Tencent?

Tencent’s future appears bright, but navigating the evolving tech landscape will be crucial. Several key trends are likely to shape the company’s trajectory:

  • Continued AI Integration: Expect to see AI become even more deeply embedded in Tencent’s products and services, driving personalization, efficiency, and innovation.
  • Global Gaming Expansion: Tencent will likely continue to expand its international gaming footprint, targeting new markets and developing games tailored to local preferences.
  • Cloud Computing Growth: The cloud business is poised for significant growth as more businesses adopt cloud-based solutions.
  • Fintech Innovation: Tencent will likely leverage its fintech capabilities to develop new financial products and services, catering to the evolving needs of its users.
Pro Tip: Keep an eye on Tencent’s AI chatbot, Yuanbao. Its performance and user adoption will be a key indicator of the company’s AI strategy.

FAQ

Q: What is Tencent’s primary source of revenue?
A: Gaming remains Tencent’s primary source of revenue, but the company is actively diversifying into areas like AI and cloud computing.

Q: How much is Tencent investing in AI?
A: Tencent spent 18 billion Chinese yuan on AI in 2025 and plans to double that investment this year.

Q: Is Tencent expanding its cloud business internationally?
A: Yes, Tencent is planning to expand its cloud computing presence in Europe and the Middle East.

Q: What are some of Tencent’s popular games?
A: Popular games include “Delta Force”, “Valorant Mobile”, “Honor of Kings”, and “Peacekeeper Elite”.

Seek to learn more about the evolving tech landscape in China? Explore our other articles on emerging technologies and digital market trends.

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Business

Forget DeepSeek. Of China’s 5 new AI models, UBS prefers this one

by Chief Editor
written by Chief Editor

China’s AI Revolution: MiniMax Challenges DeepSeek and Reshapes the Global Landscape

The artificial intelligence landscape is undergoing a seismic shift, and China is rapidly emerging as a central force. While DeepSeek initially stunned the world with its cost-effective and powerful AI models, a new contender, MiniMax, is quickly gaining ground. This isn’t just a domestic competition; it’s a challenge to the established AI order, with implications for global markets and technological advancement.

The Rise of MiniMax: A Disruptive Force

MiniMax, a relatively new player that went public in Hong Kong in January 2026, is making waves with its M2.5 model. Data from OpenRouter indicates that developers are increasingly choosing MiniMax M2.5 over both DeepSeek’s V3.2 and offerings from U.S. Companies. UBS analysts report that MiniMax’s AI usage has already reached one-third of Anthropic’s Claude, and at a staggering one-tenth of the price.

This price-performance ratio has caught the attention of investors. UBS initiated coverage of MiniMax with a buy rating and a price target of 1000 Hong Kong dollars ($127.83 as of March 1, 2026), representing a potential upside of over 30% from its recent trading price. The company’s diverse portfolio, extending beyond text generation to include video, audio, and AI companionship tools, further distinguishes it from competitors like Zhipu, which focuses on coding, and Moonshot, which prioritizes coding and agentic task completion.

Beyond Models: China’s AI Ecosystem Evolves

The competition extends beyond individual models. Chinese tech giants – Alibaba, Tencent, Baidu, and ByteDance – are integrating AI into existing applications and services, driving adoption, particularly in lower-tier Chinese cities. These companies invested heavily in promotions during the Lunar New Year holiday to encourage AI usage, focusing on features like image and video generation, quick commerce, and transactional bookings.

This shift towards user applications signals a broader evolution in China’s AI strategy. The initial shockwave from DeepSeek’s advancements highlighted China’s potential, and now the focus is on translating that potential into tangible benefits for consumers and businesses.

The Global Impact: A $41 Billion Opportunity

The implications of China’s AI advancements are global. UBS estimates that MiniMax could capture 3% of the global enterprise services market, representing a segment revenue of $41 billion. Specifically, video generation presents a $5 billion revenue opportunity, while AI companionship could generate around $4 billion.

The speed at which new AI models disrupt existing rankings is remarkable. Users are quick to adopt tools that offer superior performance at lower costs. If MiniMax’s growth trajectory continues, UBS analysts suggest the stock could climb even higher, potentially reaching 1380 HKD.

Distillation Concerns and National Security

The rapid progress of Chinese AI companies has also raised concerns in the United States. Anthropic has accused DeepSeek, MiniMax, and Moonshot AI of illegally extracting capabilities from its Claude model through a process called distillation. This involves creating over 24,000 fraudulent accounts and using over 16 million exchanges with Claude to train their own models. OpenAI has made similar allegations regarding DeepSeek and ChatGPT. This practice, while common in the industry, is explicitly banned by many leading AI model providers and raises national security concerns.

FAQ

Q: What is AI distillation?
A: AI distillation is a technique where a smaller, more efficient model is trained to mimic the behavior of a larger, more complex model.

Q: Which companies are currently leading the AI race in China?
A: DeepSeek, MiniMax, Moonshot AI, Alibaba, Tencent, Baidu, and ByteDance are all key players.

Q: What is the potential market size for MiniMax?
A: UBS estimates MiniMax could achieve $41 billion in segment revenue by capturing 3% of the global enterprise services market.

Q: Are there concerns about the methods used by Chinese AI companies?
A: Yes, Anthropic and OpenAI have accused some Chinese companies of using illicit methods, such as distillation via fraudulent accounts, to accelerate their AI development.

Did you know? DeepSeek shocked the industry in early 2025 by launching a powerful model requiring fewer computing resources than its competitors.

Pro Tip: Keep an eye on MiniMax’s development, as its focus on diverse AI tools – including video and audio generation – sets it apart from many competitors.

Stay informed about the latest developments in the AI revolution. Explore our other articles on artificial intelligence and technology trends. Subscribe to our newsletter for exclusive insights and updates.

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World

Prosus Bets Big on India: Eyes $100 Billion Company

by Chief Editor
written by Chief Editor

India’s Tech Boom: Prosus Bets Big on the Next Generation of Giants

The world of technology is always evolving, and right now, all eyes are on India. Fabricio Bloisi, CEO of Prosus, a major global investor, recently shared his bullish outlook on the Indian tech landscape, predicting the emergence of a $100 billion tech company in the coming years. This ambitious forecast highlights a significant shift in investment strategies, and underscores India’s burgeoning influence on the global stage.

Following in the Footsteps of Tencent: A Proven Strategy

Prosus, backed by South African giant Naspers, is no stranger to identifying and backing tech titans. Their most notable success story? Tencent, the Chinese social media and gaming behemoth. Naspers’ early investment in Tencent, back in 2001, has delivered an astronomical return. This success has fueled Prosus’ strategy of identifying and nurturing ecosystems, much like the one Tencent built in China around its super-app, WeChat.

The lesson? Early bets on promising markets, combined with a focus on building connected platforms, can yield extraordinary results. Prosus aims to replicate this success in India, and the early signs are promising.

Did you know? Tencent’s WeChat integrates everything from messaging and payments to hailing taxis and ordering food. This ecosystem approach has proven highly successful.

India’s Tech Ecosystem: Key Investments and Opportunities

Prosus has already poured billions into the Indian tech sector, with investments in prominent companies like PayU (payments) and Meesho (e-commerce). They also hold a substantial stake in Swiggy, a food delivery service that recently went public. These investments are a clear signal of their long-term commitment to the Indian market.

The strategy? Building ecosystems. Bloisi emphasized the importance of ecosystems in the U.S. and China and Prosus is building similar models in India. By focusing on foundational services like payments and food delivery, alongside e-commerce and travel, they are creating interconnected platforms poised for explosive growth. This will also involve some IPOs that will also stimulate the market.

The Power of Local Investment: Fueling Growth

Bloisi also highlighted the importance of local markets investing in local companies. He sees this as critical to India’s future growth, just as it was for the United States and China. Increased investment within India’s own borders will provide a much-needed boost for these tech companies, fostering innovation and creating jobs.

Pro tip: Pay close attention to the IPOs of Indian tech companies. They’re a good barometer of market confidence and investment opportunities.

Beyond India: Global Expansion Plans

While India is a major focus, Prosus isn’t limiting its scope. They’re also actively pursuing opportunities in Europe and Latin America. In Latin America, they’ve invested in companies like iFood (food delivery in Brazil), Despegar (online travel), and OLX Brasil (online marketplace). These investments reflect the strategy of building interconnected services that enhance the user experience. Prosus is also expanding to Europe by proposing to acquire European food delivery giant Just Eat Takeaway.com.

Key Trends to Watch

  • Ecosystem building: Companies that create integrated platforms will thrive.
  • Mobile-first strategies: Mobile technology is crucial in a country where many people access the internet exclusively via smartphones.
  • Focus on FinTech: The rapid expansion of digital payment solutions is a key driver of growth.
  • E-commerce expansion: The rise of online retail is transforming the consumer landscape.

FAQ: Your Questions Answered

Q: What is Prosus?
A: Prosus is a global investment company, backed by Naspers, focused on backing high-growth tech companies in emerging markets.

Q: Why is India so attractive to investors?
A: India has a large, young population, rapidly increasing internet penetration, and a growing middle class, creating a massive market for tech services.

Q: What are the biggest risks?
A: Competition, regulatory hurdles, and infrastructure challenges are some of the potential risks.

Q: Which sectors in India are growing the most?
A: FinTech, e-commerce, and food delivery are among the fastest-growing sectors.

Q: How can I invest in these companies?
A: You can invest in Prosus directly or explore investing in the companies that Prosus supports through their respective stock exchanges.

Q: What are some of the most exciting opportunities in India’s tech scene?
A: Digital payments, e-commerce, and the creation of new apps and services are all fertile ground for growth.

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Tech

Cloud Gaming Market Analysis, Investment Opportunities, Competitive Developments 2025-2032: A $41+ Billion Industry

by Chief Editor
written by Chief Editor

Cloud Gaming’s Ascent: Navigating the Future of Entertainment

The cloud gaming market is poised for explosive growth. Driven by technological advancements, evolving consumer demands, and an increased emphasis on sustainability, this sector is reshaping how we experience video games. This article dives into the key trends and opportunities shaping the future of cloud gaming, offering insights for both industry professionals and gaming enthusiasts.

The Power of 5G and Enhanced Infrastructure

One of the primary catalysts for cloud gaming’s expansion is the rollout of 5G networks and the continuous enhancement of internet infrastructure. The speed and low latency offered by 5G are essential for delivering seamless, real-time gaming experiences. Enhanced infrastructure paves the way for a wider audience. As bandwidth improves and latency decreases, the barriers to entry for cloud gaming diminish. This will lead to a broader appeal, expanding beyond early adopters to include casual gamers and those with less powerful hardware.

Did you know? The Asia-Pacific region is currently leading the cloud gaming market, fueled by robust internet infrastructure and widespread smartphone adoption.

For a deeper dive, explore the impact of 5G on other industries here: The Transformative Power of 5G.

Sustainability as a Core Driver

Environmental consciousness is significantly influencing the gaming industry. Cloud gaming offers a compelling solution by reducing the carbon footprint associated with traditional console manufacturing and disposal. The digital delivery model inherent to cloud gaming minimizes the need for physical game distribution and hardware upgrades, appealing to eco-conscious consumers. This is becoming a major selling point for cloud gaming services, positioning them as a greener alternative.

Pro Tip: Companies that embrace sustainability are likely to attract more customers. Promote your commitment to environmental responsibility to showcase your cloud gaming services.

Key Market Players and Competitive Dynamics

The cloud gaming landscape is marked by intense competition and strategic partnerships. Tech giants are vying for market share, each leveraging unique strengths and innovative technologies. Major players like Microsoft (with Xbox Cloud Gaming), NVIDIA (GeForce Now), Sony (PlayStation Plus), and Amazon (Luna) are investing heavily in infrastructure, content, and marketing to capture a significant portion of the growing market. Emerging companies are also entering the fray, often focusing on niche areas and innovative features. The industry is constantly innovating, with AI-driven optimizations and personalized gaming experiences becoming increasingly prevalent.

Market Segmentation: A Closer Look

To understand the trajectory of the cloud gaming market, it’s essential to examine its segmentation:

  • By Type: Video streaming and file streaming. File streaming, offering partial downloads, is gaining popularity.
  • By Gamer Type: Casual, avid, and lifestyle gamers.
  • By Device: Smartphones, gaming consoles, PCs, tablets, smart TVs, and head-mounted displays. The integration of cloud gaming into existing console ecosystems allows access to various game libraries.
  • By Geography: North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific region is leading in revenue.

Recent Strategic Developments

The cloud gaming market is a dynamic environment where strategic partnerships and acquisitions shape its evolution. Recent notable moves include:

  • Sony’s expansion of its cloud gaming service, enhancing its library of games.
  • Amazon Web Services’ (AWS) agreements to boost its Luna gaming service library.
  • Microsoft’s acquisition of Activision Blizzard, broadening its cloud gaming offerings.

Addressing the Challenges

While the prospects for cloud gaming are bright, there are hurdles to overcome. One of the primary challenges is the need for a high-speed internet connection and significant data consumption, which can impact adoption rates, especially in regions with less developed internet infrastructure. Maintaining consistent streaming quality across diverse network conditions is also a critical area of focus for service providers. Furthermore, pricing models and content availability remain key factors influencing consumer choices. However, the technology is steadily improving, allowing more and more players to access cloud gaming.

FAQ: Your Cloud Gaming Questions Answered

What is cloud gaming?

Cloud gaming, also known as gaming-as-a-service, allows users to play video games on various devices by streaming them from remote servers, eliminating the need for expensive hardware.

What are the main benefits of cloud gaming?

Benefits include accessibility across multiple devices, eliminating the need for physical game purchases, reduced hardware costs, and the convenience of playing anywhere with an internet connection.

What are the biggest drawbacks?

Drawbacks include the need for a stable, high-speed internet connection, potential latency issues, and reliance on the service provider for game availability.

Who are the leading companies in the cloud gaming market?

Key players include Microsoft, NVIDIA, Sony, Amazon, and Google.

What is the future of cloud gaming?

Cloud gaming is expected to continue growing, driven by technological advances, increased internet penetration, and evolving consumer preferences. Focus will be on improving streaming quality, expanding game libraries, and offering affordable subscription models.

For more in-depth analysis, see: Cloud Gaming Market Analysis.

Ready to learn more? Explore our related articles on gaming and technology:

Join the Conversation! What are your thoughts on the future of cloud gaming? Share your opinions in the comments below!

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Business

Alibaba rose on China AI hopes. Where analysts see the stock heading

by Chief Editor
written by Chief Editor

The Alibaba AI Boom: A Sign of Things to Come?

As Alibaba’s U.S.-traded shares surge nearly 70% in 2025, the company is being heralded as a favorite play on Chinese artificial intelligence (AI) innovation. This resurgence highlights exciting trends in AI development, with Alibaba at the forefront, thanks to its deployment of impactful AI products like the Qwen AI model. Its rivals, including the formidable DeepSeek, have taken notice, creating a dynamic AI battlefield.

Jack Ma’s Strategic Reappearance

Founder Jack Ma, previously sidelined, made a strategic public reappearance, securing a front-row seat at a meeting with Chinese President Xi Jinping and entrepreneurs. This move signals Alibaba’s continued influence and direct ties to China’s tech evolution. It sets the stage for Alibaba’s narrative as a key player in the country’s burgeoning AI sector.

Record Setting—the Latest Quarter

With AI-related revenues growing by three-fold for the sixth straight quarter, Alibaba solidifies its market position. Analysts, including those at Jefferies, project further gains, targeting a $156 share price. Despite this, some caution, noting that Alibaba’s capital expenditures of 11% of revenue could press future margins—a point of concern raised by Morgan Stanley.

China’s AI Stock Heat

As Alibaba dances in the limelight, its crowding score continues to rise, setting a high bar among Chinese internet tech names. However, the rush into AI stocks has been modest at 0.02 so far this year, mingling anticipation with cautious approach, notably less than the 0.2 uplift in U.S. AI names. This market behavior reflects a measured shift toward AI commodities in China.

Competitive Landscape

The AI landscape includes significant players like Tencent and Baidu, each eyeing their slice of the AI pie. Baidu’s AI Cloud revenue rose 26% in the fourth quarter, while Tencent’s shares rose by 24% this year. JPMorgan suggests that these giants might impact AI development across different risk brackets, with unique value propositions for investors.

FAQs and Insights

Q: Is Alibaba’s recent surge in stock price sustainable?

A: Analysts like those at Jefferies expect continued growth, driven by AI innovations, though caution from firms like Morgan Stanley suggests a need to monitor capital expenditure impacts carefully.

Q: What makes Alibaba a favored AI investment?

A: Alibaba’s unique position integrating AI into its core e-commerce operations and the Qwen AI model’s success marks it as a strong contender in the AI realm, with sustained triple-digit revenue growth reinforcing investor confidence.

Pro Tips: Future Investment Avenues

While Alibaba leads, exploring diversified portfolios that include Tencent and Baidu might offer balanced exposure to China’s AI opportunities. Remember to stay updated with market shifts and analyst insights for informed decision-making.

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