CSC Financial: The overall trend of the domestic AI sector is upward.

CSC Research Report states that overseas security discussions have not changed the high-frequency iteration pace of models, and RSI is gradually becoming a consensus among leading model companies such as OpenAI and Anthropic; domestically, Alibaba and Zhipu have completed financing of approximately HKD 80 billion and USD 5 billion respectively, with large-scale investment supporting the catch-up in model capabilities, while Tencent has also increased overseas computing power procurement. On the commercialization front, overseas corporate partnerships are deepening, ChatGPT advertising annualized revenue run rate has reached USD 1 billion, and Muse is driving the broadening of consumer monetization paths; domestically, Agents are still expected to drive Token calls and a new round of ARR growth by increasing task density per user. The overall trend of the domestic AI sector is upward, and it is recommended to focus on computing power services, domestic chips and super nodes, as well as B-end AI application vendors with scenario, data, and enterprise delivery capabilities.