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Tencent hires WizardLM team, a Microsoft AI group with an odd history

1. WizardLM team left Microsoft to join Tencent's AI division. 2. Hunyuan-TurboS 0416 model claimed to outperform Google’s AI models. 3. Microsoft has faced backlash over the removal of their WizardLM-2 models. 4. Tencent is increasing investments in AI, aiming for capital expenditures of $12.49 billion. 5. The exit of WizardLM could weaken Microsoft's competitive edge in AI.

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FAQ

Why Bearish?

The loss of WizardLM could diminish Microsoft's AI innovation, impacting investor confidence.

How important is it?

The departure of talent diminishes Microsoft's competitive positioning in the AI sector.

Why Short Term?

Market reactions may be swift as analysts reassess Microsoft's AI capabilities.

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