Tencent Holdings has reported a strong fourth-quarter performance, showcasing impressive growth in both gaming and advertising revenues. The company has been actively developing its own artificial intelligence (AI) models while also collaborating with rivals. This multi-faceted approach has contributed significantly to its recent financial success.
The surge in revenue was primarily driven by an increase in some of Tencent's popular games, such as Honour of Kings and Peacekeeper Elite. This growth was attributed to a low base from the same period last year, providing a comparative boost. In addition, Tencent has been expanding its presence overseas with games like PUBG Mobile, even as the domestic games market faces challenges due to macroeconomic and regulatory factors.
Tencent has been focusing heavily on becoming a key player in the Chinese AI sector over the past two years. The company has introduced various AI models, including its latest, the Hunyuan3D-2.0 model. This innovative model can transform text or images into 3D graphics, showcasing Tencent’s commitment to pushing technological boundaries. Meanwhile, competitors like Alibaba have also been advancing their AI capabilities by launching a new version of their AI assistant app, powered by their Qwen AI reasoning model.
In addition to its 3D modeling capabilities, Tencent has developed an in-house AI chatbot named Yuanbao. This chatbot is based on Tencent's Hunyuan foundational model as well as DeepSeek's R1 technology. The integration of DeepSeek's technology is evident across Tencent's product suite, including enhancements to WeChat's search features within China.