Core Viewpoint - The company, Fourth Paradigm, has demonstrated significant growth in its financial performance for the first three quarters of 2023, with total revenue reaching 4.402 billion RMB, a year-on-year increase of 36.8%, and a notable acceleration in its core AI platform business, which saw a revenue increase of 70.1% [2][3]. Financial Performance - Total revenue for the first three quarters of 2023 was 4.402 billion RMB, reflecting a 36.8% year-on-year growth, significantly surpassing the growth rate of the same period in 2024 [2]. - Gross profit reached 1.621 billion RMB, with a year-on-year increase of 20.1%, indicating a marked improvement compared to 2024 [2]. - The gross margin stood at 36.8%, remaining stable throughout the period, with the company achieving its first quarterly profit in Q3 2023 [2]. R&D and Technological Advancements - R&D expenses amounted to 1.489 billion RMB, an increase of 8.4% year-on-year, while the R&D expense ratio decreased by 8.9 percentage points to 33.8%, showcasing improved efficiency in R&D investment [3]. - The company has invested in domestic GPU manufacturers, holding over 9% of shares in leading GPU firm Xiwang and strategically investing in another firm, Tianshu Zhixin [5]. AI Application and Market Expansion - Fourth Paradigm is focusing on the integration of domestic computing power with large models through its ModelHub XC and EngineX AI engine, aiming to convert hardware computing potential into visible business value [5]. - The company has launched the "Virtual VRAM" expansion card, allowing for memory expansion up to 256GB without hardware replacement, facilitating large-scale AI tasks [6]. Industry Trends and Strategic Initiatives - The "AI+" initiative by the State Council aims to promote deep integration of AI across various industries, marking the arrival of the AI-as-software era [8][9]. - Fourth Paradigm is addressing the fragmented software market by offering a unified AI-driven solution to streamline business processes and decision-making [9]. - The company has reported 103 benchmark users, with an average revenue contribution of 25 million RMB per user, reflecting a 71.4% year-on-year growth [10]. Consumer Electronics and Collaboration - The Phancy consumer electronics business is expanding, focusing on AI capabilities in smart terminals, with collaborations with brands like AOC and luxury car manufacturers for innovative product development [11].

Core Insights - The company reported a total revenue of RMB 4.402 billion for the first three quarters of 2023, representing a year-on-year growth of 36.8%, significantly exceeding last year's growth rate [1] - Gross profit reached RMB 1.621 billion, with a year-on-year increase of 20.1%, showing a notable improvement compared to the previous year's growth [1] - The gross margin stood at 36.8%, remaining stable throughout the period, with the company achieving its first quarterly profit in Q3 [1] Revenue Growth - The core product, the 4Paradigm Sage AI platform, generated revenue of RMB 3.692 billion, marking a year-on-year growth of 70.1%, which accelerated the company's overall performance [2] - The number of benchmark users reached 103, with an average revenue contribution of RMB 0.25 million per user, reflecting a year-on-year increase of 71.4% [6] Research and Development - R&D expenses amounted to RMB 1.489 billion, an increase of 8.4% year-on-year, while the R&D expense ratio decreased by 8.9 percentage points to 33.8%, indicating improved efficiency in R&D investment [1][2] - The company is focused on developing domestic computing power, investing in leading domestic GPU manufacturers and launching the ModelHub XC and EngineX AI engine system to enhance collaboration between hardware and large models [4] Market Position and Strategy - The company has maintained its position as the market leader in China's machine learning platform sector for seven consecutive years, aiming to drive the 4Paradigm platform as a core engine for productivity across various industries [7] - The company is actively pursuing the "AI+" strategy, integrating AI with various sectors to simplify traditional business processes and enhance operational efficiency [6] Product Development and Innovation - The company launched the Phancy consumer electronics business, focusing on AI-enabled smart terminals, and has collaborated with brands like Lamborghini and Maserati for innovative product offerings [8] - The introduction of the "Virtual VRAM" expansion card allows for significant memory expansion without hardware replacement, supporting large-scale AI tasks [4]

Core Insights - The rapid development of AI large models has highlighted GPU memory capacity as a critical bottleneck for training and inference efficiency [1][3] - Fourth Paradigm has launched the "Virtual VRAM" plug-in virtual memory expansion card, which transforms physical memory into a dynamically scheduled memory buffer pool, allowing for elastic expansion of GPU computing resources [1][2] Group 1: Product Features - The "Virtual VRAM" can expand the virtual memory capacity of a single GPU card up to 256GB, significantly enhancing the capabilities of existing NVIDIA GPUs [2] - Users can run larger-scale AI training and inference tasks without needing to replace hardware, thus avoiding additional costs associated with purchasing new GPUs [2] - The product supports various environments, including physical machines, Docker containers, and Kubernetes, allowing for easy deployment without code modification [2] Group 2: Market Implications - As the number and scale of AI models continue to grow, memory capacity has become a key factor in building AI capabilities and controlling costs for enterprises [3] - The new product is expected to provide a cost-effective computing expansion solution, helping users maintain high performance while reducing costs [3] - Fourth Paradigm plans to collaborate with more memory manufacturers to further optimize and popularize AI infrastructure [3]