Bank of America Securities released a research report noting several significant developments in China's AI sector this week. ByteDance launched Seedance 2.0, a next-generation video generation model with advanced multimodal capabilities. Zhipu AI introduced its flagship GLM-5 model, featuring enhanced programming and reasoning performance. Due to strong demand, Zhipu increased prices for its GLM programming solutions by at least 30% for new users. Additionally, DeepSeek updated its model with an extended context window and more current knowledge. MiniMax opened testing for its M2.5 model on overseas agency platforms. In the public cloud sector, UCloud announced price increases for all product and service renewals and new orders. The report suggests these developments will significantly impact China's data center sector: accelerated iteration of major AI models by domestic leaders is boosting data center demand for training; improvements in programming, reasoning, and multimodal capabilities may accelerate adoption by enterprises and developers, increasing data center demand for inference; and cloud service providers raising public cloud prices could further stabilize IDC leasing pricing trends. Strong AI demand is likely to support public cloud pricing and facilitate the pass-through of rising hardware/memory costs. Overall, the firm is positive on data center players Century Internet and GDS Holdings in the data center space, and Kingsoft Cloud Holdings in the public cloud sector.