Tencent reported a 17% rise in profits for Q2 2025, reaching 55.63 billion yuan (6.6 billion euros), driven by investments in AI and gaming.

Revenue increased by 15% to 21.9 billion euros, surpassing analyst expectations, with popular titles like Honour of Kings and Peacekeeper Elite evolving into AI-enhanced platforms.

The company's new game Delta Force exceeded 20 million monthly active users, reflecting strong growth in its gaming sector.

Tencent is intensifying its AI research and product development to stay competitive in the global AI race, especially as rivals launch open-sourced models.

Its AI strategy emphasizes ecosystem integration and modular models, embedding Hunyuan AI into WeChat and gaming, using architectures like Transformer-Mamba and MoE to optimize performance.

AI integration into WeChat enhances user engagement through tools like Yuanbao, which offers generative AI searches to its 1.4 billion monthly users.

Tencent is preparing to expand into Europe, seeking optimal locations to compete with dominant American tech giants in the cloud market.

Despite previous regulatory crackdowns, recent signals suggest Beijing is adopting a more conciliatory stance, though restrictions on minors' gaming remain.

Tencent leverages its gaming franchises and WeChat to fund AI initiatives, despite potential challenges from a global economic downturn and U.S. tariffs.

The company adopts a cautious approach to AI, focusing on integration and enhancing existing services rather than rushing large-scale platform launches.

Tencent’s strong financial position, diversified revenue streams, and substantial cash reserves provide resilience against regulatory, geopolitical, and industry risks.

Tencent is venturing into multimodal AI, integrating text, images, and 3D tech to lead in content creation and immersive experiences.