Summary of Conference Call on DeepSeek's New Model Industry Overview - The conference focused on the advancements in the artificial intelligence (AI) sector in China, particularly through the innovative n-gram hybrid architecture developed by DeepSeek, which enhances large model inference efficiency and reduces infrastructure costs [1][2][3]. Key Points and Arguments Innovations in AI Architecture - DeepSeek's n-gram module separates storage and computation, alleviating AI computational bottlenecks and reducing reliance on high-bandwidth memory (HBM), leading to significant improvements in inference capability and cost efficiency [2][3][4]. - The next-generation models will continue to leverage the n-gram architecture to enhance encoding and logical reasoning capabilities [2][3]. Impact on the AI and Semiconductor Industry - The efficiency-driven innovations in AI are narrowing the gap between Chinese AI companies and international leaders, creating positive investment opportunities in the AI and semiconductor sectors [2][4]. - The n-gram architecture's design allows for improved model efficiency through conditional memory and scalable lookup, which is crucial for China's strategy to catch up with the U.S. in AI technology [2][4][10]. Financial Analysis and Valuation - Discussions included the valuation models for companies like NATechnology Group, JCET Group, and AMEC, with key assumptions such as WACC of 10.1%, mid-term growth rate of 14%, and perpetual growth rate of 5% for NATechnology [12][13][14]. - Risks to these valuations include potential downturns in semiconductor investments, market share losses, and weak downstream demand leading to chip oversupply [12][13][14]. Additional Important Insights - The n-gram technology allows for efficient use of DRAM, requiring only about 200GB to achieve good inference performance, significantly lowering hardware barriers and costs compared to traditional systems [17]. - The architecture's ability to optimize GPU utilization and system innovation enables Chinese AI companies to reduce dependency on the latest hardware while still competing with top models globally [10][21]. - Comparisons between Chinese models like DeepSeek v3.2 and ChatGPT 5.2 show that while Chinese models excel in multi-modal reasoning and long-context processing, they still lag in task coverage compared to ChatGPT [21]. Conclusion - The advancements in n-gram technology and its implications for the AI and semiconductor industries highlight a transformative period for Chinese AI companies, emphasizing efficiency and innovation over sheer computational power. The financial outlook for related companies remains cautiously optimistic, contingent on market dynamics and technological progress [2][12][13][14].