Shares of holographic technology services provider MicroCloud Hologram Inc. ( HOLO ) surged in premarket on Monday.

The company is planning to utilize DeepSeek's R1 model into its holographic AI applications. This decision is intended to enhance the MicroCloud’s ability to generate advanced and intelligent holographic content.

The DeepSeek R1 model is distinguished by its reasoning capabilities, making it efficient in mathematics, coding, and natural language processing.

China-based DeepSeek introduced an AI model that reportedly delivers top-tier performance at a significantly lower cost.

Related Read: Aurora Mobile Partners With China’s DeepSeek To Boost AI Capabilities

Through reinforcement learning, the model autonomously evolves and refines complex reasoning strategies without relying on extensive labeled data. This makes it an apt choice for improving the precision and detail of holographic images generated by HOLO.

The integration of DeepSeek R1 will enable the company to produce more lifelike and intricate holographic images. Utilizing R1's deep learning algorithms, HOLO will be able to more effectively capture and reconstruct the geometric shapes and texture details of 3D objects, improving overall visual quality.

A key benefit of DeepSeek R1 is its open-source structure, which provides HOLO with the ability to modify and enhance the existing code.

This adaptability creates new opportunities for the company to customize its solutions to suit different customer needs and use cases.

HOLO has highlighted that this move will accelerate its research and development efforts in both AI and holographic technology, cementing its role in the 3D content creation industry.

Price Action: MicroCloud shares are trading higher by 59.4% at $2.48 in premarket at the last check Monday.

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Image: Courtesy of MicroCLoud