AI Model Market Poised for Massive Expansion

Speaking at the FORCE Original Power Conference, Volcano Engine President Tan Dai painted an optimistic picture of the AI model landscape while acknowledging current challenges. His company's Doubao model has shown strong performance in China, but Tan was quick to note that global players like OpenAI and Gemini continue to set the pace internationally.

"We're proud of what Doubao has achieved domestically," Tan told reporters, "but when you look at the global stage, we still have significant ground to cover." He pointed to Volcano Engine's Seedance and Seedream products as examples of successful international ventures that demonstrate the company's potential.

The Coming Market Boom

The real headline came when Tan turned his attention to future projections. "What excites me most isn't just competing for existing market share," he explained. "The real opportunity lies in expanding the entire market ecosystem."

Tan predicts explosive growth in 2026, with the AI model market potentially expanding tenfold. This anticipated boom would fundamentally change how companies compete. Rather than fighting over slices of a fixed pie, businesses would collaborate to bake a bigger one.

"This isn't about winner-takes-all anymore," Tan emphasized. "Success will come from working together to grow the industry as a whole while maintaining healthy competition on innovation and service quality."

Global Ambitions Meet Local Success

While bullish about future prospects, Tan remained realistic about current challenges:

• Domestic strength: Doubao's strong position in China provides a solid foundation
• Global hurdles: Competing with established international players requires significant investment
• Collaborative mindset: Industry-wide cooperation could accelerate growth beyond individual company capabilities

The president's comments suggest Volcano Engine is preparing for both scenarios - continuing to strengthen its domestic position while aggressively pursuing international opportunities.

Key Points:

• Market explosion: The AI model sector could grow tenfold in 2026
• New competition paradigm: Companies may shift from cutthroat rivalry to collaborative expansion
• Global ambitions: While successful at home, Chinese AI firms face stiff international competition
• Technical focus: Continued innovation remains crucial despite changing market dynamics