Investment Rating - The report maintains an "Outperform" rating for the internet sector, indicating expected performance above the market index by over 10% [3][4][37]. Core Insights - The e-commerce industry remains highly competitive, with platforms continuing to offer discounts to merchants and increasing investments in food delivery and instant retail to seek new growth [2][33]. - In the AI sector, major companies are benefiting from business scenarios such as cloud computing and advertising, although short-term AI agent developments still require refinement [2][33]. - The Hang Seng Technology Index is currently in a period of fluctuation, with recommendations for defensive stocks like NetEase Cloud Music, Meitu, and Tencent Music, which are less correlated with macroeconomic conditions [2][33]. Company Dynamics - OpenAI has postponed the release of its open-source model for further safety testing, which was highly anticipated [18][19]. - Google acquired part of the technology and core team from Windsurf for up to $2.4 billion, enhancing its AI capabilities [20]. - Meta has fully acquired PlayAI to accelerate its voice AI strategy, with PlayAI's team joining a new department led by a former Google executive [21][22]. - Nvidia's market value has surpassed $4 trillion, with CEO Jensen Huang recently selling shares worth approximately $36.4 million [23]. - Tencent has upgraded its search functionality in its Yuanbao product, enhancing user experience with intelligent matching of images and videos [24][25]. - ByteDance's Feishu has launched several AI products, including a knowledge Q&A feature and AI meeting tools [26]. Underlying Technology - Microsoft introduced the Phi-4-mini model, designed for resource-constrained environments, enhancing privacy by allowing local execution [27]. - Google launched a new feature in its Gemini application that converts images to videos, showcasing advancements in multimodal AI [28]. - Alibaba has open-sourced its HumanOmniV2 multimodal reasoning model, improving the understanding of human emotions and intentions [29]. - Tencent released an upgraded version of its 3D-PolyGen model, capable of generating high-quality 3D content, significantly improving modeling efficiency [30]. Industry Policies - Shanghai's Economic and Information Technology Commission released a draft action plan to promote AI industry innovation from 2025 to 2027, focusing on key areas like large models and intelligent chips [31]. - The Guangdong Provincial Department of Industry and Information Technology held a meeting to accelerate AI infrastructure development and talent cultivation [32]. - Beijing's Science and Technology Commission published a plan for high-quality AI industry development, aiming to establish a leading AI innovation center [32].