Hikvision has announced that, owing to the worldwide surge in AI computing power infrastructure and data storage requirements, certain storage product costs have escalated during the third quarter. In response to the escalating hard drive prices, the company has developed a video encoding technology, "Guanlan Encoding," which is propelled by the Guanlan large model and has been integrated into both front-end and back-end products. This technology harnesses AI-powered precise encoding capabilities to efficiently decrease video bitrates, all the while maintaining image quality and the performance of intelligent applications. When compared to H.265, it can reduce storage space requirements by over 50%, and in specific scenarios, savings can reach up to 90%. This significantly cuts down on customers' storage resource consumption and overall construction expenses. Guanlan Encoding employs large models to accurately identify and extract objects, applying distinct quantization strategies for objects and backgrounds to meticulously safeguard areas of interest. By utilizing H.26X texture encoding technology, it dramatically cuts storage costs without compromising critical information or affecting intelligent analysis. Furthermore, it boasts extensive compatibility, enabling decoding with H.26X standards to guarantee genuine encoding restoration.