Tencent’s AI Surge: Unleashing Growth Potential in Gaming and Beyond
Tencent’s AI Surge: Unleashing Growth Potential in Gaming and Beyond
Tencent Holdings is poised for long-term growth from its aggressive spending on artificial intelligence (AI) as China’s most valuable tech giant aligns its future with DeepSeek and in-house models, according to analysts.
Tencent chairman and CEO Pony Ma Huateng stated that he admires DeepSeek's models for being independent and open-source. Tencent has adopted a double-core AI strategy leveraging both DeepSeek and its own Yuanbao models.
Capital investment in AI infrastructure surged to 36.6 billion yuan in Q4, reflecting Tencent's commitment to advancing generative AI technologies. The consumer-facing Yuanbao app has surged 20-fold, becoming the third most popular app in China.
Analysts predict Tencent’s capital expenditures could reach 90 billion yuan this year. AI monetization is set to extend beyond cloud solutions, tapping into Tencent’s expansive ad business and Weixin ecosystem.
Tencent reported a strong finish to 2024, with profits hitting 51.3 billion yuan for Q4, significantly bolstering its investment capabilities. Pony Ma highlighted Tencent's focus on driving innovation in AI agents and robotics, aiming to support various sectors.
Tencent shares fell 3.8% to HK$519.5 amid market reactions.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.