(Yicai) Sept. 25 -- Volcano Engine, the cloud computing services unit of TikTok’s parent company ByteDance, has launched two video generation tools under its Doubao family of artificial intelligence model.

PixelDance and Seaweed will be available early next month, Volcano Engine’s President Tan Dai said at a launch event yesterday. The former can produce 10-second clips, while the second can create videos of up to 30 seconds.

Doubao comprises audio, language, image, and video AI creation tools, as well as an AI chat assistant, an interactive entertainment app, and other programs. Before, Volcano Engine mainly used video generation AI tools internally, Tan noted.

AI models are still not very popular in China because of the high cost, Tan said, adding that with enterprises’ large-scale adoption of AI models, larger concurrent traffic is becoming a key factor in the development of the industry.

In May, Volcano Engine started a price war in the enterprise AI model sector, pricing its main enterprise model over 99 percent cheaper than the industry average.

Volcano Engine’s gross profit margin remained positive even after the price cut, Tan pointed out. He believes that the most important factor for business-to-business service providers is sustainability.

The average daily use of Doubao models has exceeded 1.3 trillion, about 11 times the number in May. An average of 50 million images are generated every day, while 850,000 hours of voice are processed.

Editor: Futura Costaglione