First Read China Internet Sector Expert series: Video generative AI We hosted a call with an expert from a leading domestic video generative AI platform. Takeaways: Kuaishou's all-in strategy in video genAI underpins Kling's ongoing leadership The expert ranked video genAI performance as Kuaishou Kling > Sora 2 > Veo3 > Seedance based on his team's internal testing results. Kuaishou's Kling stands out with stronger prompt learning capability, relatively longer duration video generation and more precise cont ...

Group 1 - Google released its latest AI model, Gemini 3, which scored 1501 in the LMArena large model arena, ranking first [1] - Gemini has over 650 million monthly active users, with more than 70% of cloud customers utilizing its AI capabilities, and 13 million developers are leveraging its generative models [1] - Berkshire Hathaway's first investment in Alphabet indicates strong recognition of Google's product ecosystem and AI strategy, boosting global market expectations for AI companies [1] Group 2 - Chinese AI company Wondershare Technology has integrated Google's Veo3 and Nano Banana model capabilities into its products, showcasing its AI-powered video editing tool at the 2025 Google Developer Conference [2] - Wondershare Technology operates in over 200 countries and regions, with a cumulative active user base exceeding 2 billion, offering popular products like Wondershare Filmora and others [2] - In the first three quarters of 2025, Wondershare's AI server call volume surpassed 800 million, reflecting increased user enthusiasm for AI [2]

Group 1 - Google launched its latest AI model, Gemini 3, which scored 1501 in the LMArena large model arena, ranking first [1] - Gemini has over 650 million monthly active users, with more than 70% of cloud customers utilizing its AI capabilities, and 13 million developers using its generative models [1] - Berkshire Hathaway's first investment in Alphabet indicates strong recognition of Google's product ecosystem and AI strategy, boosting market expectations for AI companies globally [1] Group 2 - Chinese AI company Wondershare Technology has integrated Google's Veo3 and Nano Banana model capabilities into its products, showcasing its AI video editing tool at the 2025 Google Developer Conference [2] - Wondershare's products are available in over 200 countries, with a cumulative active user base exceeding 2 billion, including popular offerings like Wondershare Filmora [2] - In the first three quarters of 2025, Wondershare's AI server call volume surpassed 800 million, reflecting increased user enthusiasm for AI [2]

Video Theme & Narration - The company is exploring video creation with themes like Halloween and space [1][2] - The company is experimenting with Gemini to narrate the video in different styles, such as a nursery rhyme [2][3] Video Content - The video features animals wearing AR glasses and XR headsets in a jungle version of New York City [2] - The video includes elements like pumpkins and bats [3] - The animals in the video are portrayed as surprised and joyful [2][4]

Core Insights - The Bristlemoon Global Fund achieved a 5.0% return for the September 2025 quarter and a cumulative 19.3% return since inception, net of fees [2] - Key contributors to performance included AppLovin, ASML, and Alphabet, while PAR Technology Corporation, Salesforce, and Hemnet detracted from performance [3] Investment Approach - The fund focuses on compounding capital through investments in high-quality, competitively advantaged businesses with specific traits, including the ability to forecast future earnings and reinvest at high rates of return [5][7] - The portfolio consists of 95.2% long positions and 9.5% short positions, with a net exposure of 85.7% [5] Performance Analysis - The fund's top five long positions as of September 30, 2025, include AerCap Holdings, Alphabet, AppLovin, Hemnet Group, and Uber Technologies [6] - The fund's monthly performance showed fluctuations, with notable returns in September 2025 [6] ASML Holding N.V. - ASML is a monopoly supplier of lithography machines essential for semiconductor fabrication, particularly in the AI and computing sectors [18] - Despite a significant drawdown in stock price, the fund believes the bearish narratives surrounding ASML's growth prospects are misguided, emphasizing the ongoing demand for its technology [20][21] - Concerns regarding demand normalization in China and the transition to new transistor architectures are addressed, with the fund asserting that ASML's market position remains strong [22][24][35] Alphabet Inc - Alphabet has been perceived as struggling to innovate, but the fund argues that recent product launches and advancements in AI demonstrate its competitive edge [40][41] - The narrative of Google Search being disrupted by AI is countered with data showing stable growth in search revenue and the effectiveness of AI Overviews in monetization [51][53] - The company is positioned to leverage its AI capabilities and advertising scale to maintain its market leadership [59] Synopsys Inc - Synopsys is a leading vendor of electronic design automation tools, benefiting from increased design starts in the semiconductor industry [61] - A recent stock price decline following earnings results is viewed as an overreaction, presenting a buying opportunity for a company with strong fundamentals [63][66] PAR Technology Corporation - PAR has faced significant stock price volatility, with a 44% decline attributed to disappointing earnings and growth guidance [68] - The company is focusing on long-term value creation by pursuing large contracts with major clients, which could significantly enhance its annual recurring revenue [75][77] - Despite short-term challenges, the fund maintains a positive outlook on PAR's potential for recovery and growth [83]

Core Insights - OpenAI's Sora2 has gained significant popularity since its release in early October, indicating a strong interest in AI-generated content [1] - The emergence of AI in creative fields, such as filmmaking and live streaming, suggests a transformative shift in how content is produced and consumed [1] Group 1 - Sora2's release has led to various cultural references and memes, showcasing its impact on social media and popular culture [1] - The integration of AI in live streaming, with examples like Kobe and Jackson, highlights the potential for AI to enhance audience engagement and entertainment [1] - The overall trend points towards an era where AI plays a crucial role in content creation, potentially revolutionizing the industry [1]

Core Viewpoint - The Sora App, launched by OpenAI, has quickly gained popularity, achieving significant download numbers in its first week, comparable to ChatGPT's launch, but it is unlikely to disrupt the current social media landscape due to various limitations [2][5][14]. Group 1: Sora App Features and Performance - Sora App integrates social attributes and diverse creation methods to build an immersive video ecosystem, featuring a vertical video stream design and interactive user comments [2][7]. - The app's innovative features, Cameo and Remix, allow users to create high-fidelity digital avatars and engage in secondary creation of videos, respectively, lowering the barriers to video creation [9][13]. - In its first week, Sora App reached the top of the iOS free download charts in the U.S., with download numbers similar to those of ChatGPT at launch, indicating potential for further growth [5][12]. Group 2: Market Impact and Competitive Landscape - Despite its innovative features, Sora App is expected to struggle in establishing itself as an independent platform, as AIGC video content is currently viewed as a niche within existing social media platforms rather than a standalone category [3][14]. - The competitive landscape suggests that existing major players in the market are likely to catch up with the technological advancements demonstrated by Sora, as the gap in model capabilities can be bridged over time [15]. - Legal and compliance issues surrounding AIGC content, particularly regarding copyright risks, remain unresolved, which could hinder widespread adoption of the Sora App [16]. Group 3: Future Outlook - The Sora App is anticipated to influence content creation trends, particularly in enhancing user engagement through its social features, but it is not expected to cause significant disruption to the existing social media ecosystem [12][14]. - The app's impact on the domestic market is limited, but it may encourage mainstream platforms to adopt similar creative functionalities to boost user activity and advertising revenue [14].

Core Insights - The article discusses the development of Instant4D, a modern automated process that can reconstruct any monocular video in minutes, achieving a 30-fold acceleration compared to existing methods [6][15]. Group 1: Technology Overview - Instant4D addresses the challenge of efficiently reconstructing dynamic scenes from uncalibrated video sequences, significantly improving the speed and feasibility of downstream applications like virtual and augmented reality [4][6]. - The method introduces a grid pruning strategy that reduces the number of Gaussian functions by 92% while preserving occlusion structures, making it scalable for long video sequences [6]. Group 2: Performance Metrics - Instant4D outperforms state-of-the-art methods by 29% on the Dycheck dataset, demonstrating superior optimization and rendering quality [6][15]. - In comparative tests on the NVIDIA dataset, Instant4D achieved an 8-fold acceleration and a 10-fold increase in real-time rendering speed compared to previous models [17]. Group 3: Technical Innovations - The approach utilizes a simplified, isotropic, motion-aware implementation of 4D Gaussian Splatting, which reduces parameter count by over 60% and enhances rendering quality [10][12]. - The method employs the latest differentiable SLAM technique, MegaSAM, to obtain camera poses and optimize depth consistently across video frames, resulting in approximately 30 million raw 3D points from a 4-second video [8][9]. Group 4: Results and Comparisons - In the Dycheck dataset, Instant4D achieved a runtime of just 0.12 hours with a memory usage of 8 GB, showcasing its efficiency compared to baseline methods [20]. - The performance metrics indicate that Instant4D not only improves rendering quality but also significantly reduces the time and resources required for video reconstruction [20].

Core Viewpoint - The article discusses the capabilities of the GAGA-1 model developed by Sand.ai, highlighting its advanced performance in character dialogue and expression, surpassing previous models like Sora2 in nuanced facial expressions and voice synchronization [1][2][15]. Performance Testing - Initial tests showed GAGA-1's ability to generate detailed facial expressions and voice synchronization, particularly in nuanced scenarios [2][5]. - The model demonstrated clear lip movements and voice output, even in complex scenarios involving environmental sounds [4][6]. - GAGA-1 supports multilingual output, performing well in English, Japanese, and Spanish, with accurate lip synchronization and expression [8][16]. Emotional Expression - The model effectively conveyed complex emotions, such as shame and desperation, with natural voice modulation and facial expressions [9][10]. - In a dual-character scenario, GAGA-1 maintained emotional intensity and expression accuracy, even under challenging conditions [14][15]. Usage Guidelines - Suggestions for optimal use include specifying emotional changes in prompts and limiting complex body movements to avoid performance issues [16]. - The model currently supports a 16:9 aspect ratio, with plans for future vertical format support [16]. Industry Implications - The development of GAGA-1 signifies a shift in AI video models towards enhanced emotional expression and multimodal output, moving beyond basic content generation [16][17]. - The model's advancements suggest a need for industry professionals to adapt to the evolving capabilities of AI in video production [17].

Core Viewpoint - The article discusses the launch of a new AI video model, GAGA-1, which is considered to be at a top level in character performance and synchronization of audio and visuals [3][19][20]. Group 1: Product Features - GAGA-1 is designed for character performances with dialogue, achieving a level comparable to film quality, particularly excelling in short dramas and interactive gaming [20][21]. - The model allows for video generation using a combination of images and text prompts, with specific recommendations for prompt length to optimize performance [22][28]. - GAGA-1 currently offers three functionalities: Gaga Actor, Gaga Avatar, and Library, with a focus on the Gaga Actor feature for the latest model [16][18]. Group 2: Performance and Limitations - The model has shown impressive results in generating videos with realistic expressions and emotions, although it struggles with complex movements and longer prompts [30][52]. - The model's performance varies with the complexity of the prompts, and while it supports multiple languages, the quality of output can differ significantly [53]. Group 3: Pricing and Accessibility - GAGA-1 is currently available for free, with no indication of when or if a pricing model will be implemented, although it is expected to be significantly cheaper than competitors like Sora2 and Veo3 [55][57]. - The model aims to democratize video content creation, allowing more individuals to participate in the process [60][61].