On August 12, during Tencent's Q2 2026 earnings call, James Mitchell, Tencent's Chief Strategy Officer, commented on the profitability of Tencent's AI cloud business. He stated that while domestic Token prices are low, production costs are also extremely low, far below external estimates. Therefore, even with low Token prices, the business can still maintain a positive gross margin. He mentioned that the gross margins for paid users of WorkBuddy and Tencent's model services are already comparable to the overall gross margin of Tencent Cloud. The overall gross margin for WorkBuddy is relatively low because it includes some free users, which Tencent subsidizes to drive market share growth. However, the paid segment has already generated a decent gross margin.