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  • Tencent releases new AI model, says replies faster than DeepSeek-R1

Tencent releases new AI model, says replies faster than DeepSeek-R1

Also: OpenAI reveals GPT-4.5 amid flurry of new AI model releases

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Today’s AI landscape is moving at lightning speed, with major players unveiling cutting-edge models and making billion-dollar bets on the future. Tencent has introduced its Hunyuan Turbo S, claiming it responds faster than DeepSeek-R1 while maintaining high efficiency in math and reasoning tasks. Meanwhile, OpenAI has released GPT-4.5, significantly reducing hallucination rates and positioning itself as a step toward a new kind of intelligence. In a breakthrough for AI-assisted mathematics, researchers at Caltech have developed a system capable of solving million-step math problems, challenging longstanding theories. On the investment front, China’s Honor is committing $10 billion to AI-powered devices, and SoftBank is reportedly seeking a $16 billion loan to fuel its ambitious AI investments, including potential backing for OpenAI and the Stargate initiative. In AI tools, a new platform called Flora aims to revolutionize creative workflows with an AI-powered “infinite canvas.” Meanwhile, South Korea’s startup scene is facing significant challenges, with dwindling venture capital funding pushing many startups to relocate abroad.

Sliced just for you:

  • 🚀 Tencent releases new AI model, says replies faster than DeepSeek-R1

  • 🧠 OpenAI reveals GPT-4.5 amid flurry of new AI model releases

  • 🔢 AI Solves Million-Step Math Problems

  • 📱 China’s Honor announces $10 billion investment in AI devices

  • 💰 SoftBank in talks to borrow $16 billion to fund AI

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Tencent has unveiled its latest AI model, Hunyuan Turbo S, which it claims can respond to queries in under a second, outpacing DeepSeek’s widely acclaimed R1 model. The new model is designed to improve efficiency in knowledge, math, and reasoning tasks, performing on par with DeepSeek-V3, which has gained significant traction in both China and Silicon Valley. The rapid rise of DeepSeek has pushed major Chinese tech firms, including Tencent and Alibaba, to accelerate their AI advancements. Alibaba recently introduced its Qwen 2.5-Max model, claiming it outperforms DeepSeek-V3. Tencent also emphasized that the Turbo S model has significantly lower usage costs compared to previous versions, a move reflecting the pressure from DeepSeek’s low-cost, open-source approach that has disrupted China’s AI market.

OpenAI has unveiled GPT-4.5, its latest and most advanced AI model, which significantly reduces “hallucinations”—incorrect or misleading outputs—compared to its predecessor. Early testing shows a hallucination rate of 37%, down from nearly 60% in GPT-4o. The model features broader knowledge, deeper understanding, and improved reliability, though OpenAI acknowledges the high costs of running such large-scale systems. The company is evaluating whether to continue offering developer access via API due to these costs and increasing competition from more efficient, lower-cost models like DeepSeek’s R1. Meanwhile, the AI industry is seeing a wave of new releases, including Anthropic’s Claude 3.7 Sonnet and xAI’s Grok 3. OpenAI is also in talks to raise up to $40 billion at a $300 billion valuation, underscoring its commitment to scaling AI despite ongoing GPU shortages. CEO Sam Altman has emphasized that GPT-4.5 introduces a “different kind of intelligence” rather than solely focusing on reasoning, positioning it as a key step in AI evolution.

Researchers at the California Institute of Technology have developed a new AI system capable of solving complex mathematical problems requiring millions of steps, marking a major breakthrough in AI-assisted mathematics. Unlike existing models such as OpenAI’s o3 and DeepMind’s AlphaProof, which excel at solving competition-level problems, this new system targets unsolved, research-level mathematical challenges. The AI recently tackled the Andrews-Curtis conjecture, a 60-year-old problem in combinatorial group theory, successfully ruling out long-standing counterexamples. This achievement not only brings AI closer to solving Millennium Prize problems but also introduces novel algorithms that could be applied beyond mathematics. The researchers suggest these algorithms could help detect rare but high-impact “black swan” events, such as financial crashes and extreme weather, by identifying statistical anomalies in vast datasets.

Chinese smartphone maker Honor has announced a $10 billion investment over the next five years to develop AI-powered devices, signaling its ambition to expand beyond smartphones into AI-integrated PCs, tablets, and wearables. This move aligns with Honor’s preparation for a public listing following a recent shareholder restructuring. The investment comes amid a surge in AI-related funding in China, spurred by local governments and companies seeking to integrate low-cost AI models like those from DeepSeek. Honor, formerly a Huawei subsidiary, has faced increasing competition, dropping to fourth place in China’s smartphone market. Despite this, the company is receiving substantial backing from the Shenzhen local government, including research funding, tax incentives, and support for global expansion.

SoftBank CEO Masayoshi Son is reportedly in talks to borrow $16 billion to further invest in AI, with the possibility of securing an additional $8 billion in early 2026. This move aligns with SoftBank’s broader strategy, which includes a potential $25 billion investment in OpenAI and a previously committed $15 billion toward the Stargate initiative—a joint venture involving Oracle, OpenAI, and SoftBank, aiming to bolster the U.S.’s AI leadership. The total investment in Stargate and OpenAI is expected to reach $40 billion, with financing secured through SoftBank’s publicly listed assets. Stargate, announced at the White House with support from OpenAI CEO Sam Altman and Oracle Chairman Larry Ellison, has ambitions to allocate up to $500 billion to maintain a competitive edge in global AI development.

🛠️ AI tools updates

Flora, a newly launched startup led by founder and CEO Weber Wong, is developing an AI-powered “infinite canvas” designed specifically for creative professionals. Unlike many existing AI tools that prioritize accessibility over control, Flora aims to strike a balance by offering a powerful yet intuitive visual interface for designers, artists, and creatives. Instead of building its own generative AI models, Flora integrates with existing ones, allowing users to generate and manipulate text, images, and video in a collaborative, structured workflow. The tool is already being tested with design agencies like Pentagram, with the goal of drastically increasing creative output and efficiency. Wong, who has a background in both art and technology, envisions Flora as a transformative tool akin to how digital music production revolutionized composition. While AI in creative fields remains controversial, Wong hopes to attract both “AI curious” and skeptical professionals by ensuring Flora enhances rather than replaces artistic work. The platform offers a free version with limitations, while professional pricing starts at $16 per month.

💵 Venture Capital updates

South Korea’s tech startup ecosystem is facing a downturn as new company formations decline for the fourth consecutive year amid dwindling venture capital funding. In 2024, the number of newly registered tech startups dropped by 7.3% compared to the previous year, reflecting a broader trend of reduced investment. Foreign venture capital investment in Korean startups plummeted 49.4%, with global investors now contributing just 9.8% of total funding, down from 17.6% in 2021. Meanwhile, countries like India and Singapore continue to attract significant foreign investment. With limited local funding, many Korean startups are relocating abroad, with overseas moves increasing nearly sixfold in 2024. Startups struggle to secure domestic funding, often facing conditions that require collaboration with large conglomerates. The sluggish local VC market, hesitant to invest in early-stage companies, further exacerbates the issue. Without substantial policy changes to revitalize startup funding, experts warn that South Korea’s tech ecosystem risks stagnation.

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