On July 16, domestic storage chip giant Changxin Technology is set to launch its IPO. Backed by Alibaba, which cumulatively invested 7.6 billion RMB, holding about a 5% stake pre-IPO. Based on post-listing valuation estimates, this investment could yield a 17x return for Alibaba, with the equity value reaching approximately 130 billion RMB, translating to a 120 billion RMB unrealized gain for Alibaba. Both Tencent and Alibaba are ramping up capital expenditures. Alibaba invested earlier and more aggressively. If they had only started increasing investments this year, it would have cost 50% more compared to last year, mostly due to hardware price hikes. Alibaba has invested across the entire AI industry chain. If you factor in all these unrealized gains, they’ve likely earned a quarter of Alibaba’s market cap. However, the losses from their earlier new retail investments were so extreme that it offsets some of the wins. Joe Tsai summarized Alibaba’s AI strategy as a full-stack integrated layout. From foundational chips and cloud computing to mid-layer large models and top-layer application scenarios, they’ve covered the entire industry chain. They’re not betting on a single segment but rather taking a holistic approach. The entire sector is set to take off, and they’ve placed their bets at low points, with most investments tied to their own industries and computing power. This speaks volumes about Joe Tsai’s capability and vision.