Citi's analyst rating is based on the observation that the rapid development of AI models by Chinese companies, such as DeepSeek-V4, indicates a competitive landscape where success is not solely determined by performance. Instead, market leadership will depend on effective monetization strategies, sustained user adoption, and revenue generation through various means. The bank believes that enterprises will adopt a multi-model strategy to select the best tools for specific tasks, which will enhance competition and provide more cost-effective options. Consequently, Citi maintains its Buy ratings for Alibaba and Tencent.
