Woofun AI reports that Kingsoft Cloud is accelerating GPU computing cluster construction in the second half of the year to address surging demand from major clients. Xiaomi’s budget for Kingsoft Cloud’s GPU services has increased from nearly 4 billion yuan to over 10 billion yuan, upgrading from a ten-thousand-card cluster.

Additionally, Alibaba’s large model team signed a five-year computing power leasing contract involving more than 3,000 eight-card GPU servers, with annualized revenue expected to exceed 4 billion yuan after full delivery.

To meet this demand, Kingsoft Cloud raised its 2026 capital expenditure plan to 15 billion yuan and set an annual revenue target of 12.5 billion to 13.5 billion yuan. Due to tight upstream supply, the company is currently accepting only long-term contracts ranging from three to five years, with some orders facing delivery delays. Concerned about impairment risks for high-end card assets, Kingsoft Cloud has paused aggressive hardware expansion, anticipating a potential decline in computing hardware prices in the third quarter.