Tencent has posted 8 percent rise in revenue to 167.19 billion yuan ($23.14 billion) for the third-quarter ended Sept. 30. Tencent’s net income rose 47 percent to 53.23 billion yuan. Rise in revenue and profit is driven by its focus on AI (artificial intelligence).
AI-driven strategies
Tencent, the world’s largest video game company and operator of the WeChat messaging platform, has reported significant progress in its AI-driven strategies, which span across its e-commerce, marketing, and entertainment divisions.
The company has integrated AI into its core operations, notably enhancing the Mini Shops within the Weixin ecosystem. This AI-powered approach aims to offer a seamless shopping experience and has helped drive a transaction GMV of over 2 trillion RMB in the third quarter alone.
Tencent’s e-commerce growth is bolstered by AI improvements, from better order tracking and return services to optimized payment and storefront interactions.
AI’s impact was evident across various segments, particularly in value-added services (VAS) and digital content, as the company focused on expanding its ecosystem with music, video, and gaming content. Weixin and WeChat’s combined MAUs reached 1.38 billion, while QQ resumed growth to 562 million. Tencent’s marketing services and fintech were also AI-enhanced, driving a gross profit increase of 18 percent to 16 billion RMB.
Gaming remains central to Tencent’s global expansion, with international games revenue up 9 percent year-over-year. Hits like PUBG Mobile and Brawl Stars performed strongly, alongside the launch of VALORANT on consoles in multiple global markets. Tencent is set to sustain its investment in AI technology to further strengthen user experiences, emphasizing tools and solutions for its partners.
This AI-powered strategy reflects Tencent’s commitment to combining cutting-edge technology with its robust digital ecosystem, positioning the company as a leader in digital entertainment and e-commerce innovation in China and beyond.
Tencent has deepened its focus on AI, releasing significant advancements in its Hunyuan AI models and expanding cloud revenue from GPU-intensive, AI-driven applications, Martin Lau – President of Tencent, told analysts during its earnings report.
In the third quarter of 2024, Tencent introduced Hunyuan Turbo, an upgrade that employs a “heterogeneous mixture of experts” architecture. This design has doubled the model’s training and inference efficiency while reducing insurance costs by half compared to its predecessor, Hunyuan Pro.
Notably, the Hunyuan Turbo model achieved top ranking in the SuperCLUE benchmark for general AI capabilities among domestic models in China. In a move toward greater transparency and innovation, Tencent also made its Hunyuan large model, including the Hunyuan 3D generation model, available on an open-source basis.
Tencent’s international cloud revenue has also surged, largely driven by its domain expertise in gaming and live streaming, along with competitive pricing that has attracted new clients worldwide. Within Tencent’s operations, AI-powered content recommendation and ad targeting have emerged as key tools, increasing user engagement and ad targeting precision. The Video Accounts platform is one area where AI-driven ad revenue has shown rapid growth.
To drive future advancements, Tencent has heavily invested in AI-related R&D, contributing to a 9 percent increase in R&D expenses, totaling 17.9 billion RMB for the quarter. AI is also serving as a productivity catalyst within the company, with tools like the AI-powered Copilot assisting engineers, generating efficiency gains across development processes.
Baburajan Kizhakedath
