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Tencent is considering raising up to 5 billion dollars by selling offshore bonds, which are debts sold to investors outside of China. The company plans to use the money to build out the computing power and data centers needed to run its artificial intelligence models.
This move shows how expensive the AI race has become for China's tech giants. While Tencent already generates a lot of cash from its games and WeChat ads, it is choosing to borrow more to ensure it doesn't fall behind rivals who are also spending heavily on the chips and infrastructure required for AI.
Source: Reuters
Tencent is participating in a funding round for DeepSeek that values the AI company at roughly 80 billion yuan, or about 12 billion dollars. DeepSeek is a major player in China's race to build large language models, the technology that powers tools like ChatGPT.
This move fits into Tencent's broader plan to own the infrastructure of the Chinese internet. By backing a leading AI developer, Tencent secures a front-row seat to new technology it can eventually weave into WeChat and its massive gaming business. It shows the company is willing to spend heavily to ensure it does not fall behind as AI changes how people use social media and software.
Source: Proactive Investors
Tencent has signed a five-year deal with Oracle to secure access to artificial intelligence chips. These high-end chips have been hard for Chinese firms to get due to trade restrictions, and this $7 billion agreement provides a steady supply for the next several years.
This is a significant win for Tencent because its future growth depends on using AI to improve its advertising and cloud services. By securing this hardware, the company can keep building its own AI models and data centers while rivals struggle with supply shortages. It removes a major hurdle for the business and helps protect its lead in the Chinese tech market.
Source: Market Watch
U.S. Treasury Secretary Scott Bessent confirmed that the trade truce between the U.S. and China will be extended until January 10. The announcement comes as Chinese President Xi Jinping begins a state visit to Washington, signaling a period of active negotiation rather than immediate escalation.
For Tencent, this delay in potential new trade restrictions or tariffs is a helpful reprieve. While the company is mostly focused on the domestic Chinese market, its international gaming business and its ability to buy the high-end chips needed for AI work depend on stable relations between the two countries. This extension does not solve the long-term tension, but it keeps the current rules in place for a few more months.
Source: CNBC
Tencent Music, which is majority-owned by Tencent, finished raising 1 billion dollars by selling senior notes, which are a type of corporate debt. The offering was split into two 500 million dollar chunks with interest rates of about 5 percent and 5.6 percent. This confirms the deal that was announced earlier in the week. The move gives the music platform more cash on hand for its operations, though it does not change the core outlook for the parent company.
Source: PRNewsWire
Management has a history of setting conservative targets and nudging past them, showing they have a tight grip on their massive ecosystem even as it shifts toward AI.
| Expectation | |
|---|---|
| EPS | $1.12 |
| Revenue | $31.37B |