Investment Rating - The industry rating is "Outperform the Market," indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% in the next 6 months [17]. Core Insights - The report highlights significant advancements in AI gaming, particularly with the introduction of playable AI NPCs by Ubisoft, which allows players to interact with AI teammates in a dynamic gaming environment [3]. - The emergence of commercial products based on AI world models, such as Marble by World Labs and Tencent's mixed reality model, showcases the potential for creating immersive 3D worlds using generative AI [4]. - The development of AI game creation tools, like YouTube's Playables Builder, is democratizing game development by enabling users to create games without programming knowledge [4][5]. Summary by Sections AI NPC Development - Ubisoft launched a playable demo of AI NPCs named "Teammates," where players can command AI teammates using natural language, powered by Google's Gemini and Ubisoft's middleware [3]. AI World Models - Companies like Google DeepMind and Tencent are advancing in AI world models, with Tencent's mixed reality model allowing users to create interactive worlds from text or images [4]. AI Game Creation Tools - YouTube is testing an AI game creation tool, Playables Builder, which allows users to create games using simple text and media inputs, currently in testing phases in select markets [4]. - The AI game creation platform SOON by Kaiying Network integrates generative AI to streamline complex game development processes, significantly lowering technical barriers and costs [5]. Investment Recommendations - The report suggests focusing on companies related to gaming, including Tencent, NetEase, Bilibili, Giant Network, and others, as potential investment opportunities [6].

Group 1 - Tencent officially released the HY WorldPlay model 1.5, allowing users to create interactive worlds using text descriptions or images, with real-time control via keyboard, mouse, or game controller [1][10] - Xiaopeng Motors Chairman He Xiaopeng stated that there is currently no AI bubble, emphasizing that the AI market presents significant future opportunities and will drive substantial societal transformation [2][12] - Xiaomi announced the open-source launch of its self-developed AI model Xiaomi MiMo-V2-Flash, which is positioned as a new language foundation for the Agent era [3][12] Group 2 - OpenAI's CEO of application business, Phil Schiller, announced that Apple Music will integrate with ChatGPT, joining the list of partners [4] - OpenAI confirmed the appointment of Albert Lee, former Google corporate development head, as the new Vice President of Corporate Development [5] - Alibaba released the new generation of the Tongyi Wanxiang 2.6 model, which includes the first role-playing feature aimed at professional film production and image creation [6] Group 3 - xAI has established an enterprise-level AI sales team, which has grown to over ten members [7] - SenseTime launched the Seko 2.0 model, the industry's first multi-episode generative AI, based on its self-developed Seko series model [8][14] - Former OpenAI CTO Mira Murat has founded Thinking Machines Lab, with the new product Tinker reportedly valued at $50 billion [9][14] - Douyin initiated the "AI Era Frontier Discipline Co-construction Plan," collaborating to launch 100 open courses from prestigious universities to promote knowledge accessibility [10][14]

Group 1 - Tencent officially released the HY WorldPlay model 1.5, allowing users to create interactive worlds using text descriptions or images, with real-time control via keyboard, mouse, or game controller [2] - Xiaopeng Motors' chairman He Xiaopeng expressed that there is currently no AI bubble, emphasizing that the AI market presents significant future opportunities and will drive substantial societal transformation [3] - Xiaomi announced the open-source launch of its self-developed AI model MiMo-V2-Flash, which is positioned as a new language foundation for the Agent era [4] Group 2 - OpenAI's CEO announced that Apple Music will soon integrate with ChatGPT, expanding its partnership ecosystem [5] - OpenAI confirmed the appointment of former Google executive Albert Lee as Vice President of Corporate Development [6] - Alibaba released the new generation of the Tongyi Wanxiang 2.6 series model, which features a role-playing function aimed at professional film production and image creation [7] Group 3 - xAI has established an enterprise-level AI sales team, consisting of over ten members [8] - SenseTime launched the Seko2.0 model, the first multi-episode generation intelligent agent, based on its self-developed Seko series model [9] - Former OpenAI CTO Mira Murat has founded Thinking Machines Lab, with the latest valuation reaching $50 billion [9] - Douyin initiated the "AI Era Frontier Discipline Co-construction Plan," collaborating to launch 100 open courses from prestigious universities to promote knowledge accessibility [10]

Market Performance - The Hang Seng Index closed at 25,468, up 0.92% year-to-date (YTD) increase of 26.96% [1] - The Hang Seng Technology Index closed at 5,457, up 1.03% with a YTD increase of 22.15% [1] - The CSI 300 Index closed at 4,579, up 1.83% with a YTD increase of 16.39% [1] - The Shanghai Composite Index closed at 3,870, up 1.19% with a YTD increase of 15.47% [1] - The Shenzhen Component Index closed at 13,224, up 2.40% with a YTD increase of 26.98% [1] Currency and Commodity Performance - The Brent crude oil price is at $60.16 per barrel, down 5.66% over the last month and down 15.73% over the last six months [2] - Gold price is at $4,320.56 per ounce, up 6.82% over the last month and up 27.53% over the last six months [2] - The Chinese Yuan Index is at 97.710, down 0.26% over the last month but up 2.23% over the last six months [2] Economic Indicators - The general public budget revenue in mainland China for the first eleven months reached 20.05 trillion RMB, a year-on-year increase of 0.8% [9] - The revenue from state-owned land use rights in mainland China decreased by 10.7% year-on-year [10] - The UK inflation rate for November increased by 3.2% year-on-year, lower than the expected 3.5% [12] Company News - Micron Technology reported a first-quarter earnings per share of $4.78, exceeding market expectations, with revenue of $13.64 billion, also above expectations [19] - Tencent released its mixed reality model 1.5, which includes a comprehensive real-time world model framework [16] - Xiaomi launched its self-developed AI model MiMo-V2-Flash, which supports deep thinking and real-time data applications [17][18]

Group 1: Company Developments - Tencent has restructured its AI team, establishing new departments such as AI Infra and AI Data, with former OpenAI researcher Vinces Yao appointed as Chief AI Scientist [2] - AMD's CEO Lisa Su visited China and met with the Minister of Industry and Information Technology, expressing gratitude for support in AMD's development in China and plans for further investment [4] - OpenAI is reportedly negotiating with Amazon for at least $10 billion in funding and has appointed former UK Chancellor George Osborne as the head of its "OpenAI for Countries" project [7] Group 2: Market Trends and Insights - The global automotive semiconductor market is projected to reach nearly $96.9 billion by 2029, with a compound annual growth rate (CAGR) of 7.4% [10] - Databricks announced a funding round exceeding $4 billion, bringing its valuation to $134 billion, highlighting strong investor interest in AI technology [15] Group 3: Company Performance and Stock Movements - Alibaba's investment arm reduced its stake in Huayi Brothers from 6.06% to below 5%, stabilizing the company's shareholding structure [8] - The stock of Muxi Co., a domestic GPU company, surged on its debut, reaching a market cap of up to 358 billion yuan, outperforming expectations [12] Group 4: Product Launches and Innovations - Baidu Health launched the "Wenxin Health Steward" and the AI creation platform Dr.Flow, aimed at enhancing healthcare content creation [16] - Tencent released the "Hunyuan World Model 1.5," enabling users to create interactive worlds through text or image inputs [17] - JD.com has launched a "self-pickup" feature nationwide, enhancing the online ordering and in-store pickup experience for users [19]

Group 1 - Tencent announced an upgrade to its large model research architecture, establishing new departments: AI Infra, AI Data, and Data Computing Platform, to enhance its large model research capabilities and core competencies [1][2] - Vinces Yao has been appointed as the Chief AI Scientist, overseeing the AI Infra and Large Language Model departments, reporting to Tencent's President Liu Chih-Ping [1][2] - The AI Infra department will focus on building technical capabilities for large model training and inference platforms, while the AI Data and Data Computing Platform departments will handle data and evaluation systems, as well as data intelligence integration [2] Group 2 - Tencent's flagship model, TurboS, is the first large-scale MoE model based on a hybrid linear attention mechanism, with a rapid iteration pace of one version per month since its launch [3] - Other major companies are also making significant moves in AI, such as ByteDance's launch of the Doubao phone and Alibaba's establishment of the Qianwen C-end business group, aiming to create a super app for AI users [3][4] - The competition in the AI application layer is shifting towards building sustainable competitive advantages around specific use cases and industry workflows, which are seen as valuable and difficult to replicate by independent third-party vendors [4]