CITIC Securities: Domestic models accelerating iteration, major factory layout AI IDE track.

CITIC Construction Investment pointed out that Alibaba's Qwen model has been open-sourced three times in a row, Step3, the next-generation multimodal reasoning basic model of Stepped Stars, has greatly improved reasoning efficiency, and the capabilities of domestic models continue to improve. The overseas AI coding track is hot, with GitHub Copilot expected to achieve approximately 4 billion ARR in December 2024, Cursor has already exceeded 500 million ARR, and Windsurf also surpassed 1 billion ARR in April 2025. Domestic products such as Byte TRAE, Alibaba Tongyi Lingma AI IDE, and Tencent CodeBuddy IDE have entered the AI IDE track, which is expected to drive the improvement of domestic model API calls. Byte opened sourced Coze on July 26, and domestic AI application scenarios are expected to accelerate.