Microsoft is reportedly considering legal action against Amazon and OpenAI over a US$50 billion cloud agreement , escalating tensions in the rapidly evolving artificial intelligence (AI) infrastructure race. Dispute Centres on Cloud Exclusivity At the core of the dispute is whether Amazon Web Services (AWS) can host OpenAI’s new commercial offering, “Frontier,” without breaching Microsoft’s exclusive cloud partnership with the AI firm. Microsoft’s agreement requires that access to OpenAI models be delivered via its Azure cloud platform , making any potential AWS involvement a possible contractual violation . The reported deal could significantly reshape the competitive landscape in cloud computing and AI services , where exclusivity and infrastructure control are key strategic advantages. High Stakes in the AI Infrastructure Race The potential legal challenge underscores intensifying competition am...
Geely Automobile Holdings Ltd. reported better-than-expected earnings for 2025, as strong vehicle sales and internal restructuring helped the company close the gap with industry leader BYD Co..
Earnings Beat Driven by Strong Sales Growth
Geely posted net profit of 16.85 billion yuan (US$2.4 billion), slightly above market expectations of 16.5 billion yuan. Revenue surged 25% year-on-year to 345.2 billion yuan, supported by strong demand across its vehicle lineup.
On an adjusted basis, excluding one-off items, profit jumped 36%, indicating improving operational efficiency.
Vehicle deliveries rose nearly 40% to 3 million units, driven by popular models such as the EX2 hatchback (Xingyuan)and premium offerings like the Zeekr 9X SUV, which has led sales in the high-end segment.
Market Share Gains Against BYD
Geely has been steadily gaining ground on BYD, even outselling its rival globally in the first two months of 2026, marking its largest lead since 2022.
The company is targeting 14% sales growth in 2026, as part of its long-term ambition to become one of the world’s top five automakers by the end of the decade.
However, BYD still maintains a clear advantage in profitability and scale, supported by its vertically integrated supply chain, which allows better cost control.
Strategic Overhaul Begins to Pay Off
Geely’s ongoing restructuring under its “Taizhou Declaration” strategy appears to be yielding results.
The company has focused on cost optimisation and consolidation, merging brands such as Zeekr and Lynk & Co back into its main listed entity. These moves are aimed at improving efficiency and streamlining operations.
Weak Exports Remain a Concern
Despite strong domestic performance, Geely’s overseas expansion remains a weak spot.
Exports totaled 420,097 units in 2025, largely flat year-on-year due to declining demand in Russia. In contrast, BYD’s overseas sales surged 150% to 1.05 million units, highlighting a growing gap in international markets.
Stock Reaction Reflects Profit-Taking
Despite the earnings beat, Geely’s shares fell as much as 5.5% in Hong Kong, suggesting that strong results were already priced in or investors remain cautious about global expansion challenges.
Investor Takeaways
Geely delivered earnings above expectations, with strong revenue growth and improving margins.
Vehicle sales surged nearly 40%, driven by successful mass-market and premium models.
The company is closing the sales gap with BYD, even outperforming it in early 2026 volumes.
Strategic restructuring and cost optimisation are beginning to support profitability.
Export weakness remains a key risk, especially compared to BYD’s rapid global expansion.
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