Let's talk about the fourth paradigm - from divergence to consensus

Originally, this content should have been written by Fourth Paradigm's CEO Dai Wenyuan, but unfortunately, his PR and public relations department seem to be indifferent to the company's market value management, marketing planning, and product releases. As a spiritual shareholder, I have to take on the task lightly.

Seven years ago today, a consumer electronics technology company born in Zhongguancun was listed on the Hong Kong Stock Exchange with an issue price of 17 Hong Kong dollars. It broke on the first day, and the founder and vice chairman hid in a utility room, embarrassed to meet the investors involved in the IPO, even though he was firmly convinced that he was engaged in a great cause and would surely build a great company.

Today, this company has released two cars, a sedan and an SUV, completely changing the harsh investors' bias against its valuation. From being dismissed during disagreements to rushing to buy when consensus was reached, it took less than a year.

AI Agent is undoubtedly the hottest track discussed in the tech circle this year. As foundational large models become a must-compete area for big companies, we are on the eve of the booming development of massive AI native applications. We have seen the strong rise of Palantir, Lovart's changes to creators, and Cursor's improvements in programming efficiency.

As a pioneer in the industry, Fourth Paradigm has transitioned from early machine learning (ML) to neural networks and has accumulated a user base centered on finance, gradually expanding to top KA customers such as operators and the three major oil companies. Compared to other late-start AI startups, it has accumulated considerable industry know-how and is one of the few players in the AI track with performance support and close to PMF profitability.

In many AI narratives, returning to the essence of business still requires orders or user stickiness as support. Only such companies will not be swept off the table in the fierce competition of large models.

Among the many customer groups, the financial industry, mainly banks, is one of the customer groups with the most sufficient IT budget and outstanding research and development capabilities. Among them, the information technology department of China Merchants Bank is comparable to internet giants, performing excellently in software development and user experience.

Gaining recognition from financial institution customers indirectly indicates that Fourth Paradigm's products and solutions can indeed help users reduce costs and increase efficiency. In other words, if the bank's IT department recognizes it, other industries will be relatively easier.

The hardest part is that from disagreement to consensus, it requires the right timing, location, and people. We often get a lower price due to disagreements, but this is just the beginning of a long wait. Only when consensus is formed can we achieve extraordinary returns.

$PHANCY(06682.HK)