Baidu debuts its self-driving car in Wuzhen, East China's Zhejiang, Dec 14, 2015. [Photo/IC]

"Baidu is really investing a lot of time in artificial intelligence which is great. It is what US companies are doing right now but it is not a mature technology and, as such, it cannot be monetized right now."

Alibaba is unlikely to let up on its diversification strategy. According to analysts BNP Paribas, the company could even step on the accelerator.

It predicts the company has a potential war chest for acquisitions of some $38 billion in 2016, two-a-half times the $15 billion it spent in 2015.

Towson, also co-author of the best-selling The One Hour China Book, says Alibaba's love of dealmaking is partly driven by a need to gain greater scale.

"If your competitor becomes twice your size, you are likely at risk and just growing organically will not be enough. So Alibaba's activity is driven by a race to achieve size. This can often lead to competitive panic."