Investment Rating - The report maintains an investment rating of "Outperform the Market - A" [5] Core Insights - The 2025 World Artificial Intelligence Conference (WAIC) showcased significant advancements in AI technology, particularly in computing power, algorithms, and applications, indicating a robust growth trajectory for the industry [12][60] - Domestic manufacturers are progressively enhancing their chip performance from inference to training, emphasizing ecosystem support and application scenarios [13][60] - The report highlights the emergence of quantum computing as a disruptive innovation in the computing power industry, with potential for exponential growth in computational capabilities [38][39] Summary by Sections 1. Industry Overview - The WAIC 2025 featured over 800 companies and more than 3000 cutting-edge exhibits, marking the largest scale in its history [12] - The conference focused on AI technology frontiers, industry trends, and global governance practices [12] 2. Computing Power - Domestic chip manufacturers are evolving from inference-focused AI chips to high-performance training chips, showcasing various industry applications [13] - The report notes the importance of supernodes, integrated machines, and liquid cooling solutions as key trends in the future of domestic AI computing power [18][19] 3. Algorithms - The evolution of large models is highlighted, with a shift towards multi-modal capabilities and the integration of deep reasoning and thinking abilities [43][44] - The report emphasizes the growing importance of AI agents and physical AI, which aim to enable intelligent agents to understand and interact with the real world [43][44] 4. Applications - The report identifies a flourishing landscape for both B2B and B2C AI applications, with significant advancements in areas such as AI glasses, smart driving, and robotics [60] - C-end applications focus on AIGC and productivity tools, while B-end applications emphasize cost reduction and efficiency improvements across various sectors [60][61] 5. Quantum Computing - Quantum computing is positioned as a critical future technology, with companies showcasing solutions that leverage quantum mechanics for superior computational capabilities [38][39]

Core Viewpoint - The article highlights the launch of Step 3, a new generation of open-source base model by Jieyue Xingchen, which is positioned as a leading open-source VLM (Vision-Language Model) that excels in various benchmarks and has significant commercial potential [1][2][11]. Group 1: Model Features and Performance - Step 3 is recognized for its strong performance, surpassing other open-source models in benchmarks such as MMMU, MathVision, and SimpleVQA [1][41]. - The model integrates multi-modal capabilities, combining text and visual understanding, which is essential for real-world applications [10][39]. - Step 3 is designed to balance intelligence, cost, efficiency, and versatility, addressing key challenges in AI deployment [7][8]. Group 2: Technical Innovations - The underlying architecture of Step 3 utilizes a proprietary MFA (Multi-matrix Factorization Attention) design, optimizing for efficiency and performance, particularly on domestic chips [29][31]. - The model features a total parameter count of 321 billion, with 316 billion dedicated to LLM (Large Language Model) and 5 billion for the visual encoder, showcasing its extensive capabilities [33][34]. - Step 3 employs advanced distributed inference techniques, enhancing resource allocation and reducing operational costs [38]. Group 3: Commercialization and Market Impact - The launch of Step 3 marks a significant step towards commercialization for Jieyue Xingchen, with expectations of substantial revenue growth, projected to approach 1 billion yuan in 2025 [54]. - The model has already been integrated into various smart devices, with partnerships established with over half of the top 10 domestic smartphone manufacturers [54]. - The establishment of the "Model-Chip Ecological Innovation Alliance" with multiple chip manufacturers signifies a strategic move to foster collaboration and reduce costs in the AI ecosystem [51][52]. Group 4: Industry Positioning - Step 3 is positioned as a solution to the pressing industry need for a practical, open-source multi-modal reasoning model, filling a significant market gap [58][60]. - The article emphasizes the shift from competitive pricing strategies to collaborative innovation as a sustainable growth path for the industry [59][60]. - Jieyue Xingchen's rapid iteration and comprehensive model matrix have solidified its reputation as a leader in the multi-modal AI space [57].