Tencent’s messaging app operates at a scale few global platforms can match. With 1.4bn users and a 93 per cent share among Chinese internet users, it has long been a part of daily life among locals. Yet scale alone is not a guarantee of continued dominance. With artificial intelligence quickly reshaping industries in China, Tencent is now making a calculated bet on its next big transformation.

Tencent’s stock has risen 15 per cent in the past week, driven by the announcement that its social media and messaging app Weixin — the domestic version of its WeChat app, which serves international users — will integrate AI-powered search from DeepSeek, China’s answer to OpenAI. This is more than just a feature upgrade. It marks a significant shift in Tencent’s AI strategy: choosing an external partner over its own proprietary large language model.

Tencent has good reason for its all-in bet on AI. The technology was already driving its growth. Tencent profits rose 47 per cent in the third quarter, beating expectations. Advertising revenue rose almost a fifth to $4.1bn, largely due to AI-powered video ads and recommendation algorithms. This self-reinforcing cycle, where AI drives engagement, engagement generates more data and data refines AI models, is quickly becoming an important edge.