Tencent’s First-Quarter Profit Rises 11%, AI Investment to Increase in Second Half

Tencent is positioning artificial intelligence as a key driver of its next phase of growth, aiming to broaden its revenue base through cloud services, enterprise collaboration and generative AI products. Its ability to leverage its existing social-network and corporate customer base to close the gap with Chinese and overseas technology rivals will shape its medium- to long-term competitiveness.

Tencent reported an 11% year-on-year increase in adjusted net profit for the first quarter of 2024. Management said it would raise capital expenditure in the second half of 2024 to accelerate AI infrastructure development and product research, but did not disclose the additional investment amount. The company is currently promoting its Hy3 preview model and WorkBuddy agent service.