Meituan has announced its entry into the AI model development race following a 20% increase in quarterly revenue. The Chinese tech giant, known for its meal delivery services, is now developing its own AI model named “LongCat,” aiming to compete with industry leaders like ByteDance’s Doubao and Alibaba’s Qwen. Founder Wang Xing revealed plans to significantly increase capital spending on AI, including investments in AI chips, though specific amounts were not disclosed. LongCat is expected to enhance Meituan’s AI strategy, particularly in bridging online and physical markets. Meituan’s revenue jump to 88.5 billion yuan ($12.2 billion) in the December quarter, coupled with a surge in net income to 6.2 billion yuan, positions the company well to compete in the AI sector. The company’s extensive network of users and merchants is seen as a significant advantage in implementing AI in the physical world. Meituan is also expanding its overseas presence, with successful launches in Hong Kong and Saudi Arabia, and is considering further market entries in Europe and Southeast Asia.