HSBC Research released a report analyzing the Mainland China Large Language Model (LLM) competition. In terms of infrastructure (representing the ability to manage/use chip resources), Ali (BABA.US) outperforms Baidu (BIDU.US) in communication efficiency; Bytedance and Ali seem to be ahead in GPU cluster scale.

In terms of MaaS, Ali seems to have more enterprise customers than Baidu. According to comparable data, Baidu's daily API request volume exceeds that of Ali and Tencent (00700.HK). Bytedance's daily token usage is higher than Baidu and Tencent. Third-party reviews indicate that Tencent and Bytedance are leading in text-to-image conversion. No third-party reviews have been found regarding products from Ali, Baidu, and Tencent in text-to-video conversion.

The bank believes in the advantages of Ali in GPU capacity and paas, maintains a 'buy' rating with a target price of $134 for the US stock. At the same time, Tencent's advantages in communication paas and video cloud solutions are seen as driving profit growth for cloud business, maintaining a 'buy' rating with a target price of 570 Hong Kong dollars. Baidu Cloud may face short-term challenges due to changes in its personal cloud management team, rated as 'hold', lowering Baidu's US stock target price from $120 to $100.