Alibaba Cloud vs CoreWeave

Alibaba Cloud Recognized as a Notable Vendor in Forrester's 'The Web Application Protection Platforms Landscape, Q3 2026'

Alibaba Cloud has been recognized as a Notable Vendor in Forrester's Q3 2026 Web Application Protection Platforms Landscape, highlighting its robust web security capabilities.

China's Ulanqab Data Centers: Who Pays for the Grid Wait

In Ulanqab, a Chinese AI data center hub, grid infrastructure is still under construction, causing delays between completed data centers and their power connection. Operators like GDS invest before service begins and collect no fees until billing starts. The Financial Times reports about 15 GW of committed capacity, while Goldman Sachs counted 12.5 GW. Data centers used 3.27 billion kWh in H1 2026, up 89.5% year-over-year. Power costs in Ulanqab are about Rmb 0.358 per kWh, much cheaper than Beijing's Rmb 0.80. However, substation construction can take three to five years, far longer than the 12 months to build a data center hall. The article examines the financial risk operators carry during these waits.

• About 15 GW of data center capacity has been committed in Ulanqab, according to the Financial Times.
• Goldman Sachs counted 12.5 GW of operating and planned capacity in June, up from 3.3 GW in July 2025.
• Data centers in Ulanqab used 3.27 billion kWh in H1 2026, up 89.5% year-over-year.

Joe Tsai: Open Source Is Europe's AI Opportunity

Alibaba Cloud's blog features a new post by Joe Tsai discussing open source as Europe's AI opportunity, alongside other new posts on QwenWork, Qoder, and AgentCore.

Janus Henderson Fund Manager Defends CoreWeave Debt Stake

John Lloyd, global head of multi-sector and corporate credit at Janus Henderson, whose fund owns CoreWeave 9.75% bonds due in 2031, sees a buying opportunity despite market skepticism. CoreWeave's debt is distressed with yields above 15%, and its stock has tumbled, but Lloyd believes the selloff is an overreaction. The company has roughly $51.6 billion in total debt and a debt-to-equity ratio of 702%. Analysts expect revenue and EBITDA to ramp up next year, but capital expenditures will also grow. Lloyd suggests CoreWeave can use creative funding methods, such as GPU financing or increased customer prepayments, and notes the company has no near-term maturities. He also highlights tight supply-demand dynamics in AI compute and potential IPOs from Anthropic and OpenAI as supportive factors.

• CoreWeave has roughly $51.6 billion in total debt, including about $35 billion in notes, bonds and loans.
• CoreWeave's 9.75% bonds due 2031 yield to maturity is 15.97%, up over 70% since issuance.
• CoreWeave's stock tumbled 20% over the past week, and its five-year credit default swap spread is nearly 1,081 basis points.

HSBC warns CoreWeave shares to drop over 30%

HSBC has issued a 'reduce' rating on CoreWeave, a cloud infrastructure provider for AI workloads, with a price target of $39, implying a 36% downside from the previous close. The bank cites structural concerns for 'neoclouds', including CoreWeave's high debt load of over $51 billion and weak return on invested capital (8.9% average 2026-30, below its borrowing cost). Credit default swaps have reached distress levels, and the stock has already fallen more than 25% last week and over 21% in the last five days. HSBC also notes moderating revenue from large language models. The call is contrarian, as most analysts (32 of 45) have buy or strong buy ratings, according to LSEG data.

• HSBC initiated a 'reduce' rating on CoreWeave with a price target of $39 per share, implying 36% downside.
• CoreWeave has accumulated over $51 billion in debt to fund its AI infrastructure build-out.
• The company's credit default swap spreads reached distress levels last week.

AI Rally Fades as Neoclouds Fall, IPO Dives

Wall Street's AI rally stalled in Asia and Europe, with neocloud stocks like CoreWeave facing selling pressure despite a Goldman Sachs upgrade. Meanwhile, South Korean AI data center firm Elice saw its shares plunge over 30% on debut, highlighting IPO market jitters. Attention turns to earnings from Netflix and SpaceX, both reporting after the close. Nvidia announced a strategic cooperation with Germany and plans to invest nearly $10 billion in European companies and research institutions. Geopolitical tensions and rising oil prices add to market uncertainty.

• The AI rally on Wall Street faded in Asian and European markets.
• South Korean AI data center firm Elice's shares fell over 30% on market debut.
• CoreWeave shares declined despite an upgrade from Goldman Sachs.