Hi folks, we are back with our weekly edition of China’s Digital Digest, wherein we bring you weekly updates on China’s digital space. The report takes a quick glance at China’s complex and rapidly evolving social media landscape by providing updates on the latest happenings across the social media industry. Here are the major highlights of the report.
1. Tencent Fourth-Quarter Profit Surges 90% on Strong Gaming, AI Performance
Chinese social media giant Tencent Holdings said its fourth-quarter profit rose 90 percent from a year earlier, aided by strong performance from its video-gaming business and more recent promotion of artificial intelligence (AI).
Profit for the three months ended December reached 51.3 billion yuan (US$7.1 billion), exceeding the consensus estimate of 43.9 billion yuan. Revenue grew 11 percent to 172.4 billion yuan, beating estimates of 168.7 billion yuan. For the full year, the company’s profit rose 68 percent from a year earlier to 194 billion yuan, while revenue grew 8 percent to 660.2 billion yuan, in line with estimates of 657.6 billion yuan. The company said in its financial disclosure that it has “benefited from AI-powered enhancements to [its] advertising platform” and “growth in evergreen games”.
2. Tencent Slows GPU Deployment, Blames DeepSeek Breakthrough
Chinese tech giant Tencent has slowed the pace of its GPU rollout since implementing DeepSeek.
Chief Strategy Officer James Mitchell revealed the slowdown during the company’s Q4 2024 earnings call, when asked how capital expenditure on AI will impact margins and profits. Mitchell replied that Tencent’s capital expenditure on GPUs mostly goes towards its advertising and games businesses, which both deliver strong returns.
3. Tencent Launches T1 Reasoning Model Amid Growing AI Competition in China
Chinese tech giant Tencent has officially launched the T1 reasoning model, intensifying the competition in China’s fast-evolving artificial intelligence landscape.
Unveiled via its official WeChat account, the T1 model aims to deliver superior reasoning capabilities with faster response times and improved efficiency in processing lengthy text documents. The launch of T1 comes on the heels of heightened rivalry between AI companies in China, especially following DeepSeek’s introduction of models that reportedly offer performance comparable to or better than Western counterparts at substantially lower costs. Tencent’s T1 is powered by its Turbo S foundational language model, which was unveiled last month and claims to process queries faster than DeepSeek’s R1 model.
4. TikTok Adds Simplified Mobile Camera Connection for Livestreams
TikTok is looking to make it easier to stream with multiple camera angles, by enabling users of its TikTok Studio desktop streaming set-up to easily connect their phone, or a friend’s device (or even an iPad), as a second camera.
Within the set-up process for your desktop TikTok Live stream, in the TikTok Studio app, you can now simply scan in the QR code displayed within the app screen via your phone’s camera to link up the two devices. Users have been able to use two cameras for their streams via TikTok Studio for some time, but this will make it easier for people to plug and play with their mobile device, which could enable a lot more users to stream via two angles at once.
Wrapping Up
The vast and diverse nature of the Chinese Social Media space makes it incredibly challenging to keep a tab on the rapid developments taking place. However, China’s Digital Digest brings you all the latest updates from there to keep you abreast of all the evolving trends.
To delve deeper into the findings of our latest report, click here.
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