Jefferies reported that ByteDance's cloud arm Volcano Engine is targeting annual revenue of more than $14.7 billion before 2030, based on a media interview with its president Tan Dai, with the unit now expected to hit that milestone earlier than previously planned. The broker noted that industry model-as-a-service (MaaS) revenue was expected to grow five to ten times each year, and Volcano Engine revised its own target upwards from the level set at the start of the year. Jefferies highlighted the role of Seedance, Volcano Engine's video generation model, which contributes more than half of MaaS revenue, ranks first in the Chinese market, and generates close to half its revenue from overseas. Tan reportedly sees larger long-term opportunities in large language models and agents than in video generation. Jefferies noted that an industry price war in 2024 had reflected weaker value creation at that time, and that the number of enterprises consuming more than one trillion tokens had risen from over 100 in December to more than 200 by June. The broker also flagged the launch of a professional edition of Volcano Engine's Doubao AI assistant, with monthly subscription packages ranging from about $5.60 for students to $74 at the premium tier. Jefferies expects rising token consumption to benefit Chinese cloud service providers more broadly, naming Baidu, Alibaba, Tencent and Kingsoft Cloud as beneficiaries, holding buy ratings on all four larger groups.