Author: Zhou Yuan / Wall Street Watch

Did not expect that by the end of the year, AI large models would dominate the news in this way.

In the first half of the year, the domestic hundred model battle; in the fourth quarter, with ByteDance's release of an AI headset on October 10—the first AI intelligent headset Ola Friend, the industry believes it could be an entry device for the large model, finally welcomes a sufficiently complete and realistic space for imagination.

The reason for the "entry-level" evaluation is that Ola Friend connects to the Doubao large model, allowing interaction through voice without connecting to a phone, providing personalized assistance to users in scenarios such as information queries, travel, English learning, and emotional communication.

"Does this mean that in the AI era, phones are no longer needed? Can headsets also become entry devices for calling digital services (Apps)?" On December 15, an analyst from an Institution told Wall Street Watch, "If that's the case, even if the headset takes on a similar role to the phone, the future space for GenAI (generative AI) headsets based on large models will also become a brand new incremental market."

What differs AI headsets from previous ones is that they can exist independently as a commercial entry device without relying on a phone.

The reason the Penghua CSI Mobile Internet Index Fund(LOF)-A can replace the internet and become the core driving force for reconstructing new production relationships is that it can highly integrate Business Services in a digital manner and retrieve them as needed for users.

At this stage, Smart Phones have become the quick access point for various Business Services in the digital mobile world.

Before GenAI, the devices that best met mobile needs in the Penghua CSI Mobile Internet Index Fund(LOF)-A were Smart Phones, which achieved the digital integration and retrieval of comprehensive Business Services that previous feature phones represented by Nokia Oyj could not.

Any commercial imaginative space, before generating real commercial value, will actually see the stock market preview this yet-to-be-realized imagined value. If there is real performance to match this pre-set assumption afterward, then the stock prices of related companies will soar; otherwise, they will fall from grace.

The Beanbag AI headphones, known as "Ola Friend", have seen astonishing gains in the related industry chain companies in the past month.

For example, on December 13, Zhongke Luanxun announced that "the company's Xunlong third-generation BT895x chip can meet the demands for voice processing and high-speed audio transmission on the AI headphone end, and has been integrated into the FIIL GS Links AI high-quality open headphones, making it the second headphone product in the market supporting the Beanbag large-model AI after the earlier released Ola Friend headphones."

So, the Bluetooth chip in Ola Friend is provided by Zhongke Luanxun?

Zhongke Luanxun further stated in the announcement, "To meet the growing market demand for AI headphones, the company has engaged in deep cooperation with ByteDance's Cloud Computing Service platform, Volcano Engine. The company's Xunlong third-generation BT895x chip has completed integration with the Volcano Ark MaaS platform, and can now provide users with software and hardware solutions that are compatible with the Beanbag large model."

Volcano Ark MaaS refers to the Model-as-a-Service provided by Volcano Ark, a service model offered by the large model service platform officially launched by Volcano Engine on June 28, 2023. Volcano Engine, officially launched on June 22, 2020, is a technology service platform introduced by ByteDance for enterprises.

Zhongke Lanxun stated that the collaboration with Doubao Large Model will be conducted in multiple stages. In the current stage, real-time translation, meeting minutes, and real-time dialogue functions have been adapted. In the future, both parties will launch more AI functions targeting different usage scenarios. The company will continue to focus on the field of AI wearable products and deepen cooperation with Doubao Large Model, aiming to introduce better user experience AI wearable solutions to the market.

If it were just traditional wearable device headphones, the market enthusiasm would perhaps not be so high. However, Ola Friend can function independently of the smart phone as a personal AI assistant for users, which makes it completely different.

As the Bluetooth audio chip (wireless audio SoC) supplier for AI agent headphones Ola Friend, Zhongke Lanxun saw its stock price rise by 133.2% from the day after Ola Friend's launch (October 11) until December 13.

In the GenAI era, the entry device for users and commercial links in the digital world is still unanswered. Could it still be a smart phone? Or a PC (mobile laptop)? Is it possible that it is AR glasses?

The only thing that can be confirmed now is that this entry device may be diverse and ultimately integrated into the currently understood multimodal terminal integrated device—smart robot.

Just like breaking down a smart phone into its various components: screen, luminous materials, various chips and Sensors, Battery, optical lenses and modules, heat sinks, middle frames, Glass covers, etc., the main components of a smart robot (eyes = glasses? Ears = headphones?) may also exist as independent AI terminals.

From this perspective, any AI terminal device that can exist independently of a smart phone could potentially form a brand new incremental market, and the publicly listed companies in its related industrial chain deserve high attention or early planning.