Tencent earnings growth slows as AI investment costs rise
Updated
Updated · Bloomberg · May 8
Tencent earnings growth slows as AI investment costs rise
11 articles · Updated · Bloomberg · May 8
Bloomberg Intelligence expects full-year growth in the low-teen percentage range as Tencent doubles AI spending amid intensifying competition in China after DeepSeek's V4 launch.
Alibaba also faces pressure, with analysts saying weak Chinese consumer demand clouds near-term earnings while its higher valuation depends more on longer-term AI monetisation.
The report highlights how escalating AI spending and rivalry are reshaping profit expectations for major Chinese technology groups despite their push to capture future growth.
With AI costs soaring, are China's tech giants stumbling or sacrificing short-term profits for long-term AI dominance?
Facing US chip restrictions, can China’s software innovations truly overcome its hardware gap in the global AI race?
As AI agents begin executing purchases, are Chinese consumers pioneering a new 'delegated shopping' era for the rest of the world?