Tencent Doubles AI Spending to $7.8 Billion as WeChat Ads Lift Revenue 11%
Updated
Updated · Bloomberg · Aug 12
Tencent Doubles AI Spending to $7.8 Billion as WeChat Ads Lift Revenue 11%
3 articles · Updated · Bloomberg · Aug 12
Summary
Tencent spent about $7.8 billion on AI projects and computing in the June quarter, more than doubling investment as it pushes to catch up with rivals including Alibaba.
Revenue rose 11% to 204.8 billion yuan, beating analyst estimates by about 1%, with growth in WeChat advertising helping fund heavier spending on models and chips.
Capital expenditures jumped 176% from a year earlier to 52.8 billion yuan, driving a free-cash outflow of 13.8 billion yuan in the quarter.
Prosus shares fell 6% in Europe after the results, underscoring investor concern over the near-term cash cost of Tencent's AI buildup.