On December 18, at the 2024 Volcano Engine Winter FORCE Power Conference held in Shanghai, Volcano Engine President Tan Dai announced the significant update of the Doubao large model family.

The popularity of Doubao applications has brought infinite possibilities for AI computing power.

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

Of this, approximately 90 billion yuan will be used for AI computing power procurement, with plans to invest 40 billion yuan domestically and 50 billion yuan abroad (mainly in Southeast Asia) to build a strong foundation for AI computing capability; the remaining 70 billion yuan will be allocated to IDC Infrastructure and bids for network equipment such as optical modules and Switches, with 50 billion yuan for domestic and 20 billion yuan for abroad, aiming to create a large-scale data center cluster that is independently controllable.

Zhithong Finance APP learned that the reason ByteDance can make such a huge investment in AI may be because it has tasted huge benefits in AI.

The AI application Doubao under the company is wildly popular across the internet, already becoming the second largest AI product globally, with nearly 60 million active users, second only to Chat GPT.

Open Source Securities stated that Internet giants, represented by ByteDance, are heavily investing in AI and recommend focusing on investment opportunities in specific sectors.

Zheshang Securities indicated that the Doubao large model is the number one AI app in the country, and the three-dimensional layout of AI hardware around the Doubao large model is accelerating; suppliers in the ByteDance AI supply chain will benefit greatly.

ByteDance's computing power concept related Hong Kong stocks:

ZTE (00763): 1) The domestic intelligent computing center is accelerating its establishment, and operators are directing capital expenditures towards computing power, with the industry maintaining a high prosperity level. ZTE provides a full range of server products, leading in the X86 server market share and telecommunications market share, while its products are widely applied in the financial industry and are extensively used by mainstream domestic Internet enterprises. 2) Subsidiary ZTE Micro provides support for the group's business across the entire ICT industry field of "cloud, pipeline, terminal." In 2020, ZTE announced that its 7-nanometer chips achieved mass production, and 5-nanometer chips are in technology introduction; ZTE's Everest computing power chip successfully entered CHINA MOBILE's 2024 PC server product procurement project (Package 22), which includes a total of 6,173 servers, amounting to 0.381 billion. ZTE has independently developed the Nebula series large models, which are applied in various fields such as communications and programming. The large model product Doubao under ByteDance has performed excellently, and there may be potential cooperation space with ZTE in large model technology.