
Cloud Prices Surge 30% Amid AI Boom
Cloud vendors are collectively raising prices over 30% as AI demand intensifies. This marks the end of low-price competition in the sector. Higher costs will strain AI development budgets.
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Cloud vendors are collectively raising prices over 30% as AI demand intensifies. This marks the end of low-price competition in the sector. Higher costs will strain AI development budgets.

Alibaba and Baidu are raising prices for certain cloud services by up to 34% due to surging AI demand and infrastructure costs. Alibaba Cloud's services on AI chips like T-Head Zhengwu 810E will increase 5-34% starting April 18. This follows similar moves by US cloud providers.
Tencent Cloud will adjust pricing for its Agent development platform starting March 13, 2026. Models like GLM 5, MiniMax 2.5, and Kimi 2.5 end free public testing and shift to pay-per-use. Hunyuan HY2.0 Instruct and Think models see input/output price hikes up to 5x.
AI demand reverses China cloud providers' losses: Kingsoft Cloud Q4 revenue up 23.7% to 2.76B RMB with adjusted profit. Tencent Cloud achieves scale profitability first time after years of deficits. Cloud pricing power rises despite upstream costs.

Cloud computing is poised to enter a price increase era in 2026. Alibaba Cloud and other providers are staying silent and observing developments.