The Financial Associated Press reported on December 15 (editor Ruo Yu) that the Doubao concept under Douyin continues to lead the AI track. Tianyu Digital Technology, which services many leading AI products including Doubao, closed up for six boards in ten days, while Jurong Smart Home's business is currently interfacing with Doubao, obtaining five boards over six days. During intraday trading, Fang Assistant was once up 20% after preliminary discussions with Doubao regarding smart devices. On the news front, in November's global monthly active rankings, Doubao APP had an MAU of 59.98 million, second only to OpenAI's ChatGPT and ranking second globally. Additionally, Douyin's creative tools, Jianying and CapCut, achieved over a hundred percent revenue growth in 2024, with total revenues approaching 10 billion yuan. The global monthly active users of Jianying and CapCut have also exceeded 0.8 billion.

Furthermore, the 2024 Volcano Engine FORCE Power Conference·Winter will be held in Shanghai on December 18-19. The conference will showcase the new Doubao large model and hold more than 10 thematic forums, with the main technical forum focusing on the theme of "AI+X Full Stack Capability Interpretation," highlighting major AI practices.

Liu Xi from Sealand Securities stated on December 12 in a research report that this conference will present the new Doubao large model, which is expected to give birth to new functions and applications, likely becoming another heavyweight product after ChatGPT and is expected to accelerate the development of the large model industry. Orient Securities pointed out in a research report dated December 13 that with the widespread rollout of AI agents, the commercialization of model and application layers in China is likely to further accelerate and enter a phase of performance realization. Under the market's inertia of "hype around new things," this hot trend is expected to continue.

According to incomplete statistics from the Financial Associated Press, as of the time of writing, eight listed companies including Guangdong Tecsun Science & Technology, Unilumin Group, Jurong Smart Home, Fang Assistant, Thunder Software Technology, Shifeng Cultural Development, Guangdong Insight Brand Marketing Group, and China Merchants have recently released information regarding their cooperation with Doubao following institutional research or interactive platform replies, as detailed in the figure below:

Liu Xi pointed out that the Doubao large model originated from ByteDance's 2023 development of the "Lark" large model, which is one of the first large models in the country to receive algorithm filing. The Doubao large model will be officially released at the Volcano Engine Power Conference on May 15, 2024. The Doubao large model supports 256K long text processing, handles 120 billion tokens daily, generates 30 million images, and possesses strong understanding, generation, and logical reasoning capabilities.

On September 24, Volcano Engine officially launched the Doubao PixelDance and Seaweed video large models. China Merchants' Liang Cheng and others indicated in a research report on October 7 that according to their calculations, the Doubao video large model (using PixelDance V1.4 model as an example) is expected to require approximately 0.75 million images using H100 for one month of training, which is 4.3 times the training power needed for Sora; on the inference side, assuming Douyin has 0.7 billion daily active users generating 2 minutes of video daily (30% generated by the video large model), then 0.41 million H100 images would be needed daily.

Compared to Sora, Byte Doubao's video large model effectively solves the consistency problem of multi-shot transitions, maintaining consistency in subject, style, and atmosphere during shot transitions, while ensuring multiple subject interaction capabilities, a proprietary technological innovation of Doubao video models. However, in terms of the maximum generation duration of videos, the Doubao video model still has certain gaps compared to Sora. In terms of application fields, the application areas of Sora are relatively broader, while the Byte Doubao video large model has significant advantages in the film and television creation, advertising media, and short video sectors due to its corporate attributes. In terms of commercialization and localization, the Byte Doubao video large model has already announced its usage plan. Furthermore, due to its excellent understanding of Chinese semantics, the Doubao video large model will have a wider application in the local market compared to Sora.

In light of the progress made by overseas large models and in conjunction with the recent release of ByteDance's Doubao video large model, Liang Cheng and others believe that with the continuous iteration and upgrade of domestic large models, coupled with the gradual alleviation of domestic GPU supply issues and policy guidance, the demand for training computing power for domestic large models is expected to be gradually released. On the A-share side, it is recommended to pay attention to Zhongji Innolight, Eoptolink Technology Inc., and Suzhou TFC Optical Communication in the optical communication industry chain; Shengke Communication, Unisplendour Corporation, ZTE, Ruijie Networks, Feiling Kesi, and Shenzhen Gongjin Electronics in the ICT industry chain; Range Intelligent Computing Technology Group, GDS Holdings, 21Vianet, and Guangdong Aofei Data Technology in the IDC industry chain.

On December 11, GTJA's Shu Di and others pointed out in their research report that in the future, ByteDance may form a hardware product matrix centered around Doubao AI, including various products for office, education, and companionship. With the continuous progress and iteration of the Doubao model, if ByteDance further expands the product matrix centered on Doubao, the related Doubao industry chain companies will continue to benefit. Recommended in the AISoC area: Bestechnic (Shanghai) Co., Ltd., which is researching chips aimed at replacing Qualcomm's AR series and leading in end-side AI product layout; Thunder Software Technology, which has seen price increases in end-side AI products. In terms of storage: Purun Technology, focusing on the increased use of NOR driven by end-side AI. Related beneficiaries include Xingchen Technology (with a deep accumulation in AI glasses chips/ISP capabilities) and Espressif Systems (in the field of AI toy chips).

It is worth noting that recently, multiple individual stocks have clarified their collaboration status with Doubao through various channels. On December 11, Espressif Systems released an unusual announcement regarding rumors about being a supplier of Doubao AI toy products for ByteDance and providing complete machine supply services, with the company stating the following: Espressif provides IoT chips, modules, and related software technology support to various industries downstream, but has no plans to engage in specific complete machine business. Each profession has its specialty; typically, there will be industry solution providers taking the lead to create specific application solutions for certain industries.

On December 10, Quectel Wireless Solutions released an unusual announcement regarding rumors about being a supplier of Doubao AI toy products for ByteDance. The company states the following regarding the related situation: the company's main business is wireless communication modules and solutions, and AI toys are not the primary application field of the company’s products; currently, the company has not sold any products to ByteDance, nor has ByteDance designated Quectel as a supplier for its AI toy manufacturers; as of the release date of this announcement, the company has not received any orders from ByteDance or related toy manufacturers. The company is in discussions and evaluations with toy manufacturers, but no formal shipment has occurred, and no revenue has been generated.

In addition, on December 13, Cre8 Direct(Ningbo)Co.,Ltd. replied on the interactive platform that the company currently has no cooperation with ByteDance and Doubao. Shenzhen Bestek Technology and Shanghai Fullhan Microelectronics both replied on December 12 that the company currently has no cooperation with Doubao AI. Qingmu Technology stated on December 11 that as of now, the company has not established cooperation with Douyin in terms of AI promotion, AI live broadcasting, and the Doubao large model. Cre8 Direct(Ningbo)Co.,Ltd. also stated on December 11 that there is currently no cooperation with Douyin regarding Doubao.