Tencent Reports 90% Profit Surge Driven by AI, Gaming

Tencent Holdings has reported a significant 90% increase in its fourth-quarter profits, reaching 51.3 billion yuan ($7.1 billion), driven by advancements in artificial intelligence and strong performance in its gaming division. The company's revenue for the quarter also grew by 11% to 172.4 billion yuan, surpassing analyst expectations. CEO Pony Ma credited AI enhancements in advertising and increased video account engagement for the robust results, noting Tencent's strategic reorganization of its AI teams. For the full year, Tencent's revenue rose 8% to 660.3 billion yuan, with net profits jumping 68% to 194.1 billion yuan. The impressive financial performance comes amid a growing interest in AI spurred by the success of the Chinese startup DeepSeek, which has positioned China as a competitor to Western tech leaders. Despite these successes, Tencent faces challenges, including a sluggish domestic economy and political tensions with the US, which recently added the company to a list of firms linked to China's military.