How China’s Top Tech Firm Plans to Grow Without AI
Growth was driven largely by the strength of its videogame operations and digital advertising, with value-added services (VAS) rising 15%.
Quick overview
- Tencent is applying artificial intelligence indirectly across its products while reporting strong third-quarter results with a 15% revenue increase.
- The company's growth is primarily driven by its videogame operations and digital advertising, with significant gains in international gaming revenue.
- Tencent's strategy focuses on incremental AI deployment in areas like advertising and gaming, rather than making high-profile AI investments.
- The company's chairman noted that strategic investments in AI are enhancing ad targeting and improving efficiency in software and game production.
Tencent, China’s leading technology company, says it is applying artificial intelligence indirectly across its products.
Tencent—the country’s largest company by market value (USD 780 billion)—reported strong third-quarter results, with revenue rising 15% to USD 27.2 billion for the period ending in September.
The performance shows the company’s ability to continue scaling its core businesses even as analysts note that Tencent is not making any major, high-profile bets on artificial intelligence (AI).
China’s largest tech company is growing without leaning heavily on AI
Growth was driven largely by the strength of its videogame operations and digital advertising, with value-added services (VAS) rising 15% and international gaming revenue jumping more than 40%.
Its marketing division in particular posted 21% year-on-year growth, supported by stronger ad impressions and greater efficiency thanks to AI-driven targeting.
Financial and enterprise services grew 10%—a more modest contribution, but one that reinforces the company’s diversification strategy.
For Wall Street analysts, the gaming segment stands out. Domestic gaming revenue climbed 15% to 42.8 billion yuan, while international games surged 43% to 20.8 billion yuan.
The figures confirm that Tencent continues to strengthen its global footprint in digital entertainment, providing long-term structural support for growth.
Indirect innovation
While Tencent is not visibly making massive, disruptive AI investments, the company is deploying AI incrementally across areas such as advertising, gaming, and internal efficiency improvements.
This points to a strategy grounded in “complementary AI” rather than large-scale, high-risk AI bets—an approach shaped by China’s slower-moving economy, evolving regulations, and an increasingly competitive tech landscape.
“During the third quarter of 2025, we achieved solid revenue and profit growth, reflecting healthy trends in our videogame, marketing services, and financial and enterprise services businesses,” said Ma Huateng, Tencent’s chairman and CEO.
“Our strategic investments in AI are benefiting us in areas like ad targeting and in-game interactions, as well as boosting efficiency in software development and in the production of games and video,” he added.
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