Alibaba Says Its AI Model Is Superior to DeepSeek
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Forbes
3 hours ago
- Forbes
China Market Update: Massive Inflow Into Hong Kong Stocks From Mainland China Overnight
Asian equities had a strong day, led by Australia, South Korea, Taiwan, Thailand, and Vietnam, while India underperformed, as the US dollar weakened overnight. Despite wet and overcast conditions, both Hong Kong and Mainland China stocks advanced in a broad-based rally. Hong Kong was buoyed by Tencent, which rose 1.64% ahead of a mobile game release, and by gains in online entertainment stocks, including Kuaishou (up 2.79%), Bilibili (up 2.94%), and Tencent Music Entertainment (up 2.61%). Banks and healthcare companies, particularly in the biotechnology and pharmaceutical sectors, also outperformed. However, some large-cap stocks lagged, including Alibaba, which was down -0.17%, Xiaomi, which was down -0.46%, Contemporary Amperex Technology (CATL), which was down -1.29%, and BYD, which was down -2.1%. Mainland investors were highly active, purchasing a substantial $2.98 billion worth of Hong Kong-listed exchange-traded funds (ETFs) and stocks. The Hong Kong Tracker ETF saw an especially large inflow, and Tencent had significant buying. It is notable how little attention Western media gives to positive Chinese economic data. For instance, today's S&P Global July Services Purchasing Managers' Index (PMI) for China came in at 52.6, beating expectations of 50.4 and up from June's reading of 50.6. Meituan finished down -0.08%, but after the close, it announced plans to support small and medium-sized merchants and restaurants. This sector has suffered from intense price competition among Meituan, and Alibaba in the food delivery and instant commerce space. The response stems from the firm's intention to follow the government's mandate to curb unhealthy internal competition. The People's Bank of China (PBOC) and seven other government agencies, including the Ministry of Industry and Information Technology (MIIT), State Administration of Foreign Exchange (SAFE), the National Development and Reform Commission (NDRC), and the Ministry of Finance (MoF), issued new 'Guiding Opinions on Financial Support for New Industrialization' following the third Plenary Session of the Communist Party of China (CPC) Central Committee. This document demonstrates how top government leadership sets overall direction, which is then implemented by various agencies. As the name suggests, the policy aims to ease the allocation of financial resources to strengthen industrial chains with a focus on science and technology. Mainland media highlighted the goal of 'strengthening medium and long-term loan support for digital infrastructure construction, such as 5G, industrial internet, data, and computing centers.' Agencies are tasked with supporting 'emerging industries such as new-generation information technology, basic software, industrial software, intelligent (networked) automobiles, new energy, new materials, high-end equipment, spatiotemporal information, commercial aerospace, biomedical, and network and data security.' Spatiotemporal information refers to data that has both spatial (location-based) and temporal (time-based) elements. While the document does not use the term 'anti-involution,' it specifically calls for actions to 'prevent internal competition.' Despite the document's emphasis on growth and technology sectors, value stocks outperformed, led by banks, insurance, and oil companies in Shanghai. Electronic equipment companies were also strong, as Foxconn was up 6.31%. Broad market internals in both Hong Kong and Mainland China remain strong. Although a few stocks are technically overbought, the continued market breadth is a positive sign. In political news, President Trump expressed optimism about a potential US-China trade deal during his CNBC appearance this morning. He also made comments about potentially raising tariffs on India, noting how little profit US companies make in India; currently, only one publicly traded US company generates more than 20% of its revenue from India, compared to 25 companies with over 20% from China and 57 companies with more than 10% from China, according to Bloomberg's equity screening tool. On a personal note, the Ground News app was recently recommended to me. It provides a measure of the political bias of news stories by source, a useful tool to check out! Live Webinar Join us on Wednesday, August 6th, at 11 am EDT for: Private AI Unicorn Access: How Our AI ETF Opens Doors to xAI and Anthropic Please click here to register New Content Read our latest article: KraneShares KOID ETF: Humanoid Robot Rings Nasdaq Opening Bell Please click here to read
Bloomberg
5 hours ago
- Bloomberg
Amazon Will Offer OpenAI Models to Customers for First Time
Inc. plans to make OpenAI's new open artificial intelligence models available to customers, the first time the cloud computing giant has offered products from the leading AI startup. The models can mimic the human process of reasoning, months after China's DeepSeek gained global attention with its own open AI software. Amazon said it will offer the tools on its Bedrock and Sagemaker platforms, adding that their advanced reasoning capabilities make them suited for AI agents.
Yahoo
5 hours ago
- Yahoo
OpenAI launches two ‘open' AI reasoning models
OpenAI announced Tuesday the launch of two open-weight AI reasoning models with similar capabilities to its o-series. Both are freely available to download from the online developer platform, Hugging Face, the company said, describing the models as 'state-of-the-art' when measured across several benchmarks for comparing open models. The models come in two sizes: a larger and more capable gpt-oss-120b model that can run on a single Nvidia GPU, and a lighter-weight gpt-oss-20b model that can run on a consumer laptop with 16GB of memory. The launch marks OpenAI's first 'open' language model since GPT-2, which was released more than five years ago. In a briefing, OpenAI said its open models will be capable of sending complex queries to AI models in the cloud, as TechCrunch previously reported. That means if OpenAI's open model is not capable of a certain task, such as processing an image, developers can connect the open model to one of the company's more capable closed models. While OpenAI open-sourced AI models in its early days, the company has generally favored a proprietary, closed-source development approach. The latter strategy has helped OpenAI build a large business selling access to its AI models via an API to enterprises and developers. However, CEO Sam Altman said in January he believes OpenAI has been 'on the wrong side of history' when it comes to open sourcing its technologies. The company today faces growing pressure from Chinese AI labs — including DeepSeek, Alibaba's Qwen, and Moonshot AI —which have developed several of the world's most capable and popular open models. (While Meta previously dominated the open AI space, the company's Llama AI models have fallen behind in the last year.) In July, the Trump Administration also urged U.S. AI developers to open source more technology to promote global adoption of AI aligned with American values. With the release of gpt-oss, OpenAI hopes to curry favor with developers and the Trump Administration alike, both of which have watched the Chinese AI labs rise to prominence in the open source space. 'Going back to when we started in 2015, OpenAI's mission is to ensure AGI that benefits all of humanity,' said OpenAI CEO Sam Altman in a statement shared with TechCrunch. 'To that end, we are excited for the world to be building on an open AI stack created in the United States, based on democratic values, available for free to all and for wide benefit.' How the models performed OpenAI aimed to make its open model a leader among other open-weight AI models, and the company claims to have done just that. On Codeforces (with tools), a competitive coding test, gpt-oss-120b and gpt-oss-20b score 2622 and 2516, respectively, outperformed DeepSeek's R1 while underperforming o3 and o4-mini. On Humanity's Last Exam, a challenging test of crowd-sourced questions across a variety of subjects (with tools), gpt-oss-120b and gpt-oss-20b score 19% and 17.3%, respectively. Similarly, this underperforms o3 but outperforms leading open models from DeepSeek and Qwen. Notably, OpenAI's open models hallucinate significantly more than its latest AI reasoning models, o3 and o4-mini. Hallucinations have been getting more severe in OpenAI's latest AI reasoning models, and the company previously said it doesn't quite understand why. In a white paper, OpenAI says this is 'expected, as smaller models have less world knowledge than larger frontier models and tend to hallucinate more.' OpenAI found that gpt-oss-120b and gpt-oss-20b hallucinated in response to 49% and 53% of questions on PersonQA, the company's in-house benchmark for measuring the accuracy of a model's knowledge about people. That's more than triple the hallucination rate of OpenAI's o1 model, which scored 16%, and higher than its o4-mini model, which scored 36%. Training the new models OpenAI says its open models were trained with similar processes to its proprietary models. The company says each open model leverages mixture-of-experts (MoE) to tap fewer parameters for any given question, making it run more efficiently. For gpt-oss-120b, which has 117 billion total parameters, OpenAI says the model only activates 5.1 billion parameters per token. The company also says its open model was trained using high-compute reinforcement learning (RL) — a post-training process to teach AI models right from wrong in simulated environments using large clusters of Nvidia GPUs. This was also used to train OpenAI's o-series of models, and the open models have a similar chain-of-thought process in which they take additional time and computational resources to work through their answers. As a result of the post-training process, OpenAI says its open AI models excel at powering AI agents, and are capable of calling tools such as web search or Python code execution as part of its chain-of-thought process. However, OpenAI says its open models are text-only, meaning they will not be able to process or generate images and audio like the company's other models. OpenAI is releasing gpt-oss-120b and gpt-oss-20b under the Apache 2.0 license, which is generally considered one of the most permissive. This license will allow enterprises to monetize OpenAI's open models without having to pay or obtain permission from the company. However, unlike fully open source offerings from AI labs like AI2, OpenAI says it will not be releasing the training data used to create its open models. This decision is not surprising given that several active lawsuits against AI model providers, including OpenAI, have alleged that these companies inappropriately trained their AI models on copyrighted works. OpenAI delayed the release of its open models several times in recent months, partially to address safety concerns. Beyond the company's typical safety policies, OpenAI says in a white paper that it also investigated whether bad actors could fine-tune its gpt-oss models to be more helpful in cyber attacks or the creation of biological or chemical weapons. After testing from OpenAI and third-party evaluators, the company says gpt-oss may marginally increase biological capabilities. However, it did not find evidence that these open models could reach its 'high capability' threshold for danger in these domains, even after fine-tuning. While OpenAI's model appears to be state-of-the-art among open models, developers are eagerly awaiting the release of DeepSeek R2, its next AI reasoning model, as well as a new open model from Meta's new superintelligence lab.
