Chinese artificial intelligence startup DeepSeek has recently launched an update to its foundation model DeepSeek-V3.1-Terminus. Unveiled only two months after the Chinese start-up launched V3.1, it enhances coding, search, and language performance while fixing bugs raised by users.

DeepSeek has deemed the V3.1 as the company’s “first step towards the agent era.” The company’s self-reported scores demonstrate that the V3.1-Terminus showed slight improvements on several popular benchmarks.

Despite DeepSeek facing intense competition from rivals like Alibaba Group Holding’s Qwen family and ByteDance’s Doubao, the startups’ models continue to attract substantial global interest.

The weights for DeepSeek-V3.1-Terminus are now available on Hugging Face and other open-source platforms.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q2 2025.

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10. SoundHound AI, Inc. (NASDAQ:SOUN)

Number of Hedge Fund Holders: 18

SoundHound AI, Inc. (NASDAQ:SOUN) is one of the 10 Buzzing AI Stocks on Wall Street. On September 23, the voice and conversational AI company announced that it will be partnering with Red Lobster, the world’s largest and most-loved seafood restaurant company, to roll out an AI-powered phone ordering agent that will transform takeout ordering across all Red Lobster locations.

Red Lobster will leverage SoundHound’s advanced AI technology to ensure that every call made to the restaurant is answered. The system will be able to handle multiple calls simultaneously, offer seamless order placement, and answer common guest questions instantly.

The system will be trained on the entire Red Lobster menu, with orders being sent directly to the restaurant’s point-of-sale system. This will make ordering fast and efficient, and also reduce the workload for in-store staff.

“SoundHound is seeing huge demand for our AI-powered voice ordering services, and we’re excited to be working with a renowned brand like Red Lobster to revolutionize the future of ordering. Consumers have been quick to recognize the benefits of our quick and easy system, and employees are grateful for the extra breathing space it gives them to concentrate on delivering first rate customer service.”

-Ben Bellettini, SVP of Restaurant Sales, SoundHound AI.

SoundHound AI, Inc. (NASDAQ:SOUN) is a voice artificial intelligence company offering voice AI solutions to businesses.

9. BigBear.ai Holdings, Inc. (NYSE:BBAI)

Number of Hedge Fund Holders: 20

BigBear.ai Holdings, Inc. (NYSE:BBAI) ) is one of the 10 Buzzing AI Stocks on Wall Street. On September 23, the company announced that it will deploy its advanced AI and orchestration technologies in support of the U.S. Naval Forces Southern Command/U.S. 4th Fleet at UNITAS 2025, one of the world’s longest-running multinational maritime exercises.

Hosted by the US Navy, the UNITAS will be featuring an estimated 8,000 personnel from 26 allied and partner nations, including the U.S. The exercise will take place on September 15 through October 6, bringing together more than 250 participants from over 20 countries and all branches of the U.S. military.

BigBear.AI will be collaborating with digital solutions leader SMX to showcase AI-powered capabilities that can improve coordination, decision-making, and threat detection in vast maritime operation zones, particularly in missions focused on counter-narcotics, human trafficking, and arms smuggling.

During the exercise, BBAI’s domain awareness and AI orchestration solutions will be integrated across unmanned vehicles and hybrid fleet innovations, while its ArcasTM system will offer computer vision, pattern-of-life analysis, and risk forecasting to deliver near-real-time predictive and prescriptive insights.

Moreover, the company will also be demonstrating ConductorOS, its AI, data, and sensor orchestration platform. The platform can operate in denied, degraded, intermittent, and low-bandwidth (DDIL) environments to help deploy, train, and update AI models at the edge and across distributed missions.

“Our participation in UNITAS 2025 underscores BigBear.ai’s commitment to equipping U.S. and allied forces with mission-ready AI that delivers real impact where it’s needed most. In complex maritime environments – where illicit trafficking, illegal arms smuggling, and other transnational threats strain limited resources – our AI-driven insights can provide operators with enhanced situational awareness and the advantage needed to achieve mission success.”

-Kevin McAleenan, CEO of BigBear.ai.

BigBear.ai Holdings, Inc. (NYSE:BBAI) is an artificial intelligence specialist that provides decision intelligence solutions for national security, digital identity, supply chain and logistics, enterprise operations, and manned-unmanned teaming in autonomous systems.