Hong Kong Stock Concept Tracking | Doubao becomes the second largest AI product in the world, increasing investment in AI computing power (with concept stocks)

On December 18, at the 2024 Volcano Engine Winter FORCE Power Conference held in Shanghai, Volcano Engine President Tan Dai announced a major update to the Doubao Big Model Family.

The popularity of bean bag apps has brought unlimited room for imagination to AI computing power.

According to media reports, ByteDance's capital expenditure budget soared to nearly 160 billion yuan in 2025, mainly used in AI computing power procurement and IDC infrastructure, demonstrating its firm determination to deploy on a large scale in the AI field.

Of this, about 90 billion yuan will be used for the procurement of AI computing power, with a domestic investment of 40 billion yuan and a foreign investment of 50 billion yuan (mainly in Southeast Asia) to build a strong foundation of AI computing capabilities; the remaining 70 billion yuan will be allocated to IDC infrastructure and tenders for network equipment such as optical modules and switches, 50 billion yuan domestically and 20 billion yuan abroad, with the aim of building an autonomous and controlled large-scale data center cluster.

The Zhitong Finance App learned that the reason why ByteDance was able to spend such a huge investment in AI is probably because it has experienced tremendous sweetness in AI.

The company's AI application Doubao is popular all over the network. It has become the second largest AI product in the world, with nearly 60 million active users, second only to Chat GPT.

Open Source Securities said that internet giants represented by ByteDance are investing heavily in AI and recommend focusing on investment opportunities in segmented sectors.

Zheshang Securities said that the Doubao Big Model is the number one AI app in China. The three-dimensional layout of AI hardware around the Doubao Big Model will accelerate, and Byte AI supply chain manufacturers will benefit deeply.

Hong Kong stocks related to ByteDance's computing power concept:

ZTE (00763): 1) Domestic intelligent computing centers are being implemented at an accelerated pace, operators' capital expenditure is skewed towards computing power, and the industry remains booming. ZTE provides a full range of server products. It has the highest X86 server market share and the leading telecom market share. At the same time, the products are widely used in the financial industry and mainstream domestic Internet companies on a large scale. 2) The subsidiary ZTE Micro products cover all fields of “cloud, pipeline and terminal” in the ICT industry to support the group's business. In 2020, ZTE stated that its 7-nm chips had achieved large-scale mass production, and that 5-nm chips were being introduced into technology; ZTE Everest computing power chips successfully entered China Mobile's 2024 PC server product collection project (package 22). The 22nd package had a total of 6,173 servers, worth 381 million. ZTE developed its own Nebula series of large models and applied them in various fields such as communications and programming. Doubao, a big model product owned by ByteDance, performed well, and there may be room for cooperation with ZTE on big model technology.