0913 GMT - Tencent's recent integration of Chinese AI startup DeepSeek's models into its apps and services signals embracing AI opportunities is a top priority, according to Citi analysts in a research note. "The speed with which Tencent has been reacting and incorporating the model into its existing services amazes us," the analysts say. Following the integration, Tencent's AI assistant app Yuanbao has risen to second place on China's iOS free app chart, surpassing ByteDance's Doubao, with only DeepSeek ahead. Tencent has also recently reorganized several key apps, including Yuanbao, into its Cloud & Smart Industries Group, the analysts note. Citi expects Tencent to provide an optimistic outlook on capital expenditure during its 4Q earnings call, potentially spurring accelerated business services revenue growth. Tencent's shares last closed at HK$495.40. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
February 27, 2025 04:13 ET (09:13 GMT)
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