UBS Says AI Model Makers Are Valued On ARR, Not P/E Or P/S

Mainland internet giants continue to develop their own artificial intelligence models, but their valuations differ from those of model vendors, according to Ming Pao. UBS Securities China internet analyst Xiong Wei said at a media briefing that the market valuation of model makers is mainly based on annual recurring revenue, or ARR, while also emphasizing research and development capability and the speed of model version updates. He said this logic is completely different from that used for internet and software companies, which focus on price-to-earnings and price-to-sales ratios.