Kingsoft Cloud Holdings Ltd (NASDAQ:KC) stock soared 6.92% in pre-market trading on Thursday, amid rising expectations that the cloud computing company could see increased business from AI integration. This follows reports that Xiaomi, the consumer electronics giant founded by KC's chairman Lei Jun, had poached top talent from AI startup DeepSeek.
Kingsoft Cloud provides cloud infrastructure services and has been positioning itself to capitalize on the growing AI industry. The talent acquisition by Xiaomi is seen as a move to strengthen its artificial intelligence capabilities, which would boost demand for KC's cloud solutions if they are tapped to power Xiaomi's AI efforts.
The surge in KC's stock price reflects optimism around the convergence of cloud computing and AI, two rapidly evolving fields that are expected to transform various sectors in the coming years. However, concerns have been raised about the breakneck pace of AI development and the potential risks associated with advanced AI systems that could evade human control.
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