The integration of the comprehensive model into multiple businesses empowers Tencent to fully embrace the AI era.

Source: Guotai Junan Liang Zhaojin

On September 7th, Tencent's "Hybrid Big Model" announced its public availability through Tencent Cloud, and the multi-modal dialogue bot product "Tencent Hybrid Assistant" based on this model is now open for internal testing applications.

Full-chain technology self-research and innovation, demonstrating the high maturity of the Hybrid Big Model

Tencent's Hybrid Big Model is a universal large-scale pre-training model developed by Tencent throughout the entire chain. It has a parameter scale of over 100 billion and pre-training corpus of over 20 trillion tokens. It possesses powerful Chinese creative ability, logical reasoning ability in complex contexts, and reliable task execution capability.

Based on self-research and innovation throughout the entire chain, Tencent's Hybrid Big Model achieves:

1. Lower hallucination rate: By optimizing pre-training algorithms and strategies, the hallucination rate of the Hybrid model is reduced by 30%-50% compared to mainstream open-source large models.

2. Stronger resistance to inducement: Through reinforcement learning methods, the refusal rate for security-induced problems is increased by 20%.

3. Better long-text processing capability: By optimizing positional encoding, the Hybrid model has improved the generation and continuation effects of ultra-long texts.

4. Outstanding scenario reasoning and decision-making ability: The Hybrid model proposes a new strategy of thinking chains, enabling it to reason and make decisions like a human in practical application scenarios.

Currently, the Hybrid Big Model has been updated until July 2023 and has achieved the highest scores in the "model development" and "model capability" domains of the CICT standard compliance test. It is expected to continue to make breakthroughs through continuous iteration.

Multiple product integrations with the big model show results, Tencent fully embraces the AI era

The Hybrid Big Model focuses on practical scenario applications, and more than 50 businesses and products such as Tencent Meeting, Tencent Docs, and Tencent Advertising have announced their integration for testing and achieved preliminary results.

1. Tencent Meeting AI Assistant: Achieves complex tasks such as information extraction, content analysis, and summary generation.

2. Tencent Docs Intelligent Assistant: Enables one-click generation of standard format texts, functions, charts, and more.

3. Tencent Advertising Intelligent Material Production: Realizes intelligent advertising material creation tailored to individual users.

In addition, Tencent Cloud has fully integrated more than 20 mainstream models. Customers can call the Hybrid model through APIs or use it as the underlying model architecture for dedicated applications. Tencent fully embraces big models and is expected to deeply integrate industrial scenarios to unleash greater value.

Investment Recommendation

Maintain a "Buy" rating on Tencent.

Tencent's self-developed Hybrid Big Model is released, and multiple business scenarios are integrated to fully embrace AI innovation.

We maintain our profit forecast, expecting adjusted net profit of RMB 148.0/168.3/195.2 billion in 2023-2025, with PE ratios of 20X/17X/14X, and maintain a "Buy" rating.