AI spending snuffs out tencent’s profit-growth run

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Tencent has reported promising progress on the AI front in recent months, including the release of its Hy3 model.

Tencent Holdings’ double-digit earnings growth streak since 2023 ended in the second quarter amid heavier investments in artificial intelligence.

The profit slowdown came as the Shenzhen-based company, China’s largest by market capitalization, said it is more than doubling its AI spending this year, targeting both foundational models and AI agents for deep ecosystem integration.

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