ByteDance brings trillion-level incremental AI chip market opportunities

Core Viewpoints

Current Situation: Daily token usage of Doubao large model exceeded 4 trillion in December, covering 300 million terminals.

The daily token usage of the Doubao large model exceeded 4 trillion in December, growing more than 33 times since its release in May. ByteDance stated that the Doubao large model has collaborated with 80% of mainstream automotive brands and has been integrated into multiple smart terminals such as mobile phones and PCs, covering approximately 300 million devices. The call volume of the Doubao large model from smart terminals has increased 100 times in six months.

Future: Doubao embedded in terminals and applications, AIOT and application explosion is imminent.

In industry-specific scenarios, the Doubao large model has gained favor from numerous enterprise clients: In the past three months, the call volume of the Doubao large model in information processing scenarios increased by 39 times, customer service and sales scenarios grew by 16 times, hardware terminal scenarios increased by 13 times, AI tool scenarios grew by 9 times, and there was also significant growth in learning and education scenarios.

We believe that as Doubao continues to embed into terminals and applications, an explosion of AIOT and AI applications is expected in the future.

Visual Understanding Model enters the "Cent Era," Volcano Ark, Button Platform, and HiAgent facilitate easy landing of enterprise AI applications.

At the 2024 Volcano Engine Winter Conference, ByteDance AI once again brought the price of visual understanding models into the "Cent Era." The input price for Doubao Visual Understanding is 0.003 yuan per thousand tokens, which is 85% lower than the industry average price, equivalent to processing 284 720P images for one yuan.

In addition, platforms such as Volcano Ark, Button Platform, and HiAgent continue to upgrade, accelerating the landing of large models and providing efficient tools for enterprises and developers.

Current computing power planning: According to AI Fan, ByteDance has purchased 230,000 NVIDIA chips this year, becoming NVIDIA's second-largest customer.

According to Data Treasure, ByteDance's capital expenditure for 2024 will reach 80 billion yuan, far exceeding traditional internet giants, while the total expenditure of the three BAT companies is only about 100 billion yuan. More notably, this figure is expected to double to 160 billion yuan by 2025, with 90 billion allocated for AI computing power procurement and 70 billion invested in data center infrastructure construction and supporting hardware.

Broadcom CEO Hock Tan stated that the market demand for custom AI chips is expected to reach between 60 billion to 90 billion dollars by 2027. ByteDance has reached a cooperation plan with Broadcom for self-developed ASIC chips by 2027, aiming to create an AI data center scale equivalent to one million graphics cards. Additionally, the company has formed an AI chip R&D team to develop dedicated integrated circuits for AI accelerators to reduce reliance on external suppliers.

Future computing power demand: ByteDance's potential inference computing power demand is expected to exceed 2.3 million chips, with the incremental AI chip market size nearing 300 billion yuan According to our calculations (which may differ from actual conditions, with specific data subject to the figures published by each company), based on a standard of 400T (FP16) AI computing power cards, ByteDance's current training computing power demand is approximately 267,300 cards, and the text inference computing power demand is approximately 336,700 cards.

We expect that in the future, as the Doubao model is scaled and deployed in terminals and applications, ByteDance's potential text model inference computing power demand will exceed 1.3 million cards, and the video model inference computing power demand will be nearly 1 million cards, resulting in a total incremental demand exceeding 2.3 million cards, with an incremental AI chip market size of nearly 300 billion yuan and an incremental AI server market size of nearly 400 billion yuan.

Article authors: Chen Hanbo, Li Peijing, Source: Computer Game Winner, Original title: "ByteDance is Expected to Bring a Trillion Incremental AI Chip Market Size | Debang Computer"

Risk Warning and Disclaimer

The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at one's own risk