Four companies driving the next wave of AI

Artificial intelligence is evolving rapidly, but the companies powering its future don’t always make the headlines. While the early excitement focused on infrastructure and semiconductors, the next phase is unfolding in software, platforms and digital ecosystems(1). Whether it’s enabling smarter ad delivery, securing enterprise networks, or redefining how consumers interact with apps and cloud services, this wave is being led by firms with real-world traction and strategic intent.

Here are four companies helping to shape the next stage of AI. Each one is carving out a niche that is both commercially relevant and well-aligned to the broader investment case for AI.

Key takeaways

• Alibaba is doubling down on AI-native cloud infrastructure and consumer-facing tools like Tongyi Qianwen and Quark, marking a shift from recovery mode to AI-first execution.
• Tencent is embedding its DeepSeek model across Weixin and enterprise platforms, positioning its ecosystem for smarter, stickier engagement and monetisation.
• Applovin is pushing the boundaries of performance advertising with its AXON engine, a powerful signal of how AI is driving measurable outcomes in mobile marketing.
• Zscaler is building out a secure AI-ready cloud, using GenAI across its Zero Trust platform to uplift pricing, deepen adoption and win major public sector deals.

Alibaba

Alibaba is one of China’s largest tech companies. It is best known for e-commerce, cloud computing and digital payments.

Its AI strategy is starting to look more cohesive and commercially focused. At the core is Tongyi Qianwen, a family of foundation models that now power a wide range of use cases across enterprise cloud and consumer apps. Unlike some peers, Alibaba is not only building models but actively deploying them across its ecosystem(2).

Its recent launch of Tongyi Qianwen 2.5 demonstrates significant language processing gains and the ability to integrate with vertical applications like Quark, an AI-powered personal search assistant(3). That is important because it brings generative AI to hundreds of millions of users in a familiar and sticky interface. Meanwhile, AliCloud is being repositioned as an AI native infrastructure layer, with client use cases in areas like logistics, healthcare and education starting to scale.(4)

There is still work to do in narrowing the gap with global leaders, but the direction is clear. With a newly aligned leadership team and a tighter focus on execution, Alibaba is starting to look like a real contender in the platform AI race.

Tencent

Tencent is a leading Chinese tech firm behind WeChat, also known as Weixin. It is also a major player in gaming, cloud and fintech.

Tencent is approaching AI from the inside out. Rather than launching standalone models, it is weaving its in-house foundation model DeepSeek into products people already use every day. One of the highest impact moves has been the rollout of Yuanbao(5), an AI assistant now integrated into Weixin. The result is a more personalised, dynamic and context-aware user experience that also opens the door for smarter monetisation through ads and services.

On the enterprise side, Tencent is also expanding AI applications within its cloud and business solutions arm. Use cases range from productivity tools to code generation and content filtering, all powered by its proprietary models(6). And while the company remains somewhat under the radar in global AI conversations, the scale and depth of its domestic ecosystem make it a serious player.

If Alibaba is building AI as a layer, Tencent is embedding it as a utility. And that distinction is paying off, with growing enterprise adoption and early signs of margin upside across ad tech and SaaS.

Applovin

Applovin is a US software company that specialises in mobile app monetisation and AI powered performance advertising.

Applovin has gone through a transformation that positions it as one of the most leveraged names in AI enhanced marketing. At the centre of it is AXON, its AI engine that delivers optimised mobile ad placements across billions of interactions per day(7). What makes AXON stand out is not just the sophistication of the tech, but how it translates into revenue. Applovin has materially lifted return on ad spend for customers, leading to growing budgets and tighter client retention.

The company has also been actively streamlining its portfolio to focus on what it does best. The recent sale of its Apps business helps unlock more capital and clarity around its core ad network(8). On top of that, Applovin is expanding its presence in retail media and direct response. These are areas where AI plays a key role in driving conversions.

For investors, the upside case is simple. AXON is not just a buzzword. It is already showing up in performance metrics and revenue momentum. In a world where every ad dollar is being scrutinised, platforms that can prove outcomes are set to win.

ZScaler

Zscaler is a US cybersecurity company that provides cloud-based security solutions using a Zero Trust architecture.

Zscaler sits at the intersection of AI and cybersecurity. This is fast becoming a critical area of enterprise tech. As more companies embrace public and private AI applications, securing the underlying data and network becomes non-negotiable. Zscaler’s response is Zero Trust Everywhere, a platform that now embeds GenAI across multiple layers, including ZDX and its Data Protection suite.

The strategy is paying off. Zscaler recently saw a 25% YoY jump in customers spending over US$1 million annually, with much of the growth driven by upsells into AI aligned products(9). In some cases, the addition of AI agents has allowed Zscaler to raise bundled pricing by 20%.(10) Large public sector wins and momentum across Federal agencies also show that its solutions are resonating with mission critical clients.

What is particularly compelling is that Zscaler is not chasing GenAI as a separate opportunity. Instead, it is quietly integrating AI into core functions like threat detection, network access and policy enforcement, and getting paid for it.

Looking ahead

As AI moves beyond proof of concept into real world application, the companies leading the charge are no longer just those building the chips or training the largest models. They are the ones deploying AI in ways that enhance products, improve outcomes and drive meaningful business value.

Alibaba and Tencent are demonstrating how AI can be scaled across massive consumer and enterprise ecosystems. Applovin is proving that performance marketing can be reinvented through machine learning. And Zscaler is setting the benchmark for what secure AI powered enterprise infrastructure can look like.

These companies are not chasing the hype. They are building, integrating and monetising. That is the kind of AI exposure investors increasingly want, and it is exactly what thematic portfolios are designed to capture.

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