[UBS Fang Jincong: The market overprices the burden of AI expenditures and underestimates potential upside opportunities] On October 30, UBS China Internet Industry Research Director Fang Jincong pointed out in his latest opinion that in the context of how AI will change information discovery, content, and enterprise workflows is still unclear, hyperscale cloud vendors will use funds equivalent to about one year of core cash flow for infrastructure investment. Application-driven platforms invest through R&D expenses and are more flexible. Therefore, valuation discussions should distinguish between temporary investments, recurring participation costs, and permanent business changes, while the current market overprices the burden of AI spending and underestimates potential upside opportunities. He also said that there are three structural changes that will shape the industry landscape in the AI ​​era, namely capital, efficiency and ecosystem. This is beneficial to Internet head platforms with sufficient funds, full-stack capabilities, and mature customer touchpoints and scenario information. It also leaves opportunities for independent laboratories with differentiated technologies or professional advantages.