👾 AI Nuggets #13: Is Chinese Tech Sector Undervalued?

Welcome to edition #13 of the MadebyAgents newsletter. In this issue:

• OpenAI counters DeepSeek with o3-mini and reason mode

• DeepSeek beats image model rivals with Janus-Pro

• Alibaba’s new models surpass DeepSeek

• China stocks are surging higher

• Create product placements and brand kits with AI

Latest News

3️⃣ OpenAI Launches o3-Mini with Reason Mode

OpenAI has launched its new o3-mini model with a built‐in reason mode. The model explains its thinking steps before answering. It is now available in ChatGPT and via the API for both free and paid users.

What’s New

The o3-mini model now lets users see a glimpse of its internal reasoning. The model shows how it breaks down complex math, coding, and science problems. It also supports live search for up-to-date answers and comes with increased message limits for Plus and Team users (150 messages a day). This is the first time a reasoning model is free for all ChatGPT users. This comes shortly after the released Chinese reasoning model DeepSeek R1.

Business Impact

The model is cheaper than previous versions and reduces errors on complex tasks. The improved reliability and lower cost may help level the playing field against larger competitors. Developers can use the API with three different reasoning options (low, medium, and high) to optimize for specific use cases.

🐳 DeepSeek Beats Image Model Rivals with Janus-Pro

DeepSeek has unveiled Janus-Pro-7B, an open-source AI model for image generation. In tests, it outperformed OpenAI's DALL-E 3 and Stability AI's Stable Diffusion.

What's New

Janus-Pro enhances training methods, data quality, and model size. It uses 72 million high-quality synthetic images combined with real-world data. This blend results in more stable and detailed images.

Business Impact

Janus-Pro offers a cost-effective tool for image generation. Its open-source nature allows for flexible integration into various projects. This can lead to innovative applications and potential cost savings in content creation. You can try or download the model on Huggingface.

🆎 Alibaba’s new models surpass DeepSeek

Alibaba has launched Qwen 2.5-Max, an advanced AI model. The company claims it outperforms DeepSeek-V3, GPT-4o from OpenAI, and Meta's Llama-3.1-405B in key benchmarks.

What's New

Qwen 2.5-Max introduces enhanced capabilities in natural language processing and understanding. It has improved performance in complex reasoning tasks and better efficiency in processing large datasets. This positions it as a strong competitor in the AI landscape.

Business Impact

Qwen 2.5-Max offers a powerful tool for various applications. Its advanced features can enhance customer interactions, streamline operations, and provide deeper insights into data. Integrating this model could lead to increased efficiency and a competitive edge in the market. You can try the models at chat.qwenlm.ai.

AI Investments - What to Watch¹

🇨🇳 China Stocks Are Surging Higher

The positive AI and tech news around China have likely boosted Chinese tech stocks. Companies like Alibaba and Baidu among others have seen notable gains. This surge reflects growing confidence in China’s AI capabilities.

For investors, Chinese tech stocks present a compelling opportunity. China’s technology sector has the lowest valuation in history compared to its American counterpart. While Chinese stocks have seen a strong correction over the last years, US big tech has surged to new all-time highs and incredible valuations. This disparity suggests growth potential. The recent advancements in AI further enhance their appeal.

Alibaba (Chinese Amazon) currently trades about 70% below its all-time high. Baidu (Chinese Google) trades about 75% below its all-time high.

In summary, the risk/reward for China’s tech sector is very appealing. More and more rumors suggest an overvaluation of US tech. Investors should monitor these developments closely.

AI Use Cases and Tools

🪄 Create Product Placements and Brand Kits

Product Placement

Need to showcase your product in a video? With Product Placement, it's simple. Now, you can upload images of your product and pair them with avatars, allowing you to create visual assets that are great for social media, product pages, or even your latest ad campaign.

The steps: Train a new model on your photo avatar. Select product photos or use a prompt and generate looks. Your avatar is featuring your product now.

URL to Brand Kit

Brand kits don't have to take weeks. With HeyGen’s URL to brand tool, you can generate a complete brand kit from your website - pulling in your logo, colors, fonts, and media - in seconds. If your audience is multilingual, take advantage of Brand Voice, which allows you to customize pronunciation and set a do-not-translate list for consistent, on-brand messaging in any language.

Both features are only available to users on paid plans.

That’s It for This Week

✨ Before You Go:

We’d love to hear what you think. Please share your opinion.

See you next time!

Tobias from MadebyAgents