TECH

Tencent Restructures AI Unit

Published: Apr. 30, 2025 7:58 p.m. GMT+8

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The increased bet aligns with similar AI investments by rivals such as Alibaba Group Holding Ltd. Photo: Tencent

Tencent Holdings Ltd. has set up two new departments to accelerate the development of its generative artificial intelligence (AI) as the Chinese tech giant is trying to roll out AI capabilities across its portfolio of apps.

One department is dedicated to developing large language models (LLMs) while the other will focus on multimodal models, the Shenzhen-based company announced Tuesday.

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Tencent has established two new departments to develop large language models and multimodal AI, aiming to integrate AI across its app portfolio.
Its AI-related spending reached 39 billion yuan ($5.4 billion) in Q4 2024, reflecting intensified investment similar to Alibaba, which plans to invest at least 380 billion yuan in AI and cloud by 2027.
Tencent is incorporating AI features into apps like Weixin, QQ, and Yuanbao, with ongoing upgrades and organizational restructuring.

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Who’s Who

Tencent Holdings Ltd.: Tencent Holdings Ltd. has established two new departments to boost generative AI development: one for large language models (LLMs) and another for multimodal models. This restructuring aims to enhance AI integration across its apps, including Weixin and Yuanbao. Tencent recently increased AI investment, spending 39 billion yuan in Q4 2024, and plans further AI-powered features in platforms like QQ. The move aligns with similar investments by rivals such as Alibaba.

Alibaba Group Holding Ltd.: According to the article, Alibaba Group Holding Ltd. announced in February it would invest at least 380 billion yuan in cloud computing and AI infrastructure over the next three years. On Tuesday, Alibaba also released a new open-source large language model, Qwen3, which it claims outperforms DeepSeek-R1 and is cheaper to deploy.

DeepSeek: According to the article, DeepSeek is associated with the R1 model, which Tencent used to beta test Weixin’s search function in February. Additionally, Alibaba claims its new open-source LLM "Qwen3" performs better than DeepSeek-R1 and is cheaper to deploy, suggesting DeepSeek-R1 is a recognized large language model in the Chinese AI market.

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