As DingTalk's AI 1.1 update approaches, a secret initiative codenamed "Project D" has stirred the tech industry.

Recent reports reveal that DingTalk's internally referred "Project D" is gradually taking shape, with speculation suggesting a potential foray into hardware—possibly the rumored "Doubao Phone."

The term "Project D" has circulated among DingTalk employees and supply chain insiders. In August, during the closing remarks of DingTalk’s AI 1.0 product launch, founder Wu Zhao (Chen Hang) concluded his speech as the screen briefly displayed "DingTalk Real," leaving the audience puzzled without further explanation.

Analysts speculate this may tie into the upcoming AI 1.1 release event scheduled for December 23.

When questioned about the "Doubao Phone" rumors and the nature of "Project D," DingTalk responded: "We’ve heard of the 'Doubao Phone,' but not 'Project D.' Certain internal innovation projects do require high confidentiality."

This ambiguous stance has only fueled market curiosity. The so-called "phone" could either be a conventional smartphone or an entirely new AI Agent-driven interactive device.

Industry observers suggest that "Project D" signals DingTalk’s shift from a software ecosystem toward integrated hardware-software solutions, potentially marking a strategic move into next-gen enterprise AI hardware. The "D" may reference "DingTalk" itself or hint at ambitions in a specific market.

If "Project D" materializes as a hardware product, it would signify Alibaba’s pivot in its B2B strategy—from connectivity tools to intelligent, integrated productivity solutions.

Amid intensifying competition in collaborative office software and the growing convergence of AI and hardware, DingTalk’s potential hardware breakthrough could serve as a key indicator of Alibaba’s innovation direction, blending B2B and consumer-facing technologies. This move may also test whether China’s enterprise SaaS market can break through existing limits in the AI era.