BRIEF: Phancy responds to AI model obsolescence concerns after shares plunge
AI applications developer Phancy Group Co.Ltd. (6682.HK), formerly known as Fourth Paradigm, on Wednesday issued a statement after its shares plunged in response to market talk that its products could be rendered obsolete by the rapid iteration of large AI models.
The company clarified that accelerated development of large AI models is driving rapid growth in demand for corresponding computing power and services, a trend from which its core business directly benefits.
It further disclosed that computing power-related revenue, primarily priced based on usage volume, accounted for 83.9% of its total in the first nine months of last year, with its software business contributing only 16.1%.
Shares of Phancy closed down 0.8% on Thursday. The stock has declined 31% from its peak in January.
By Lau Chi Hang
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