Microsoft(US:MSFT) GUOTAI HAITONG SECURITIES·2025-09-17 12:17Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The AI industry is witnessing significant developments, including major investments and technological advancements, indicating a robust growth trajectory - Strategic partnerships, such as Microsoft's $17.4 billion agreement with Nebius for AI computing power, highlight the increasing demand for high-performance AI capabilities [5] - The launch of innovative products like the Fellou CE browser and Microsoft's rStar2-Agent demonstrates the ongoing evolution in AI applications and models [6][7] Summary by Sections 1. AI Industry Dynamics - ASML invested €1.3 billion in Mistral AI, becoming its largest shareholder, with a total funding round of approximately €1.7 billion, valuing Mistral at €10 billion, marking it as Europe's most valuable AI company [4] - Concerns exist regarding potential dilution of ASML's shareholder equity and the risk of an AI bubble, but the investment may stimulate chip demand through increased AI applications [4] 2. AI Application Insights - The Fellou CE browser, the first of its kind, integrates interaction, tasks, and memory to automate cross-application execution and multi-modal creation, achieving a 72% success rate in complex writing tasks [6] 3. AI Large Model Insights - Microsoft's rStar2-Agent, a 14 billion parameter mathematical reasoning agent, aims to enhance long-chain reasoning capabilities, achieving cutting-edge performance with only 510 steps of reinforcement learning training [7] 4. Technology Frontiers - NVIDIA announced the Rubin CPX GPU, designed for long-context AI reasoning, featuring 128GB GDDR7 memory and peak performance of 30 PFlops, with a new AI server architecture expected to launch by the end of 2026 [8][9] - AMD's MI450 aims to surpass NVIDIA's offerings in both training and inference across AI and high-performance computing markets [9] - Meta introduced the DeepConf framework for lightweight reasoning, significantly improving efficiency and accuracy in complex reasoning tasks [10] - The REFRAG framework by Meta optimizes RAG model decoding efficiency, achieving up to 30 times acceleration in generating responses while maintaining accuracy [11] - NVIDIA's UDR system allows for customizable research workflows, enhancing the autonomy and practicality of AI agents in enterprise-level document analysis [12]