According to Tencent's first-quarter 2025 financial report, the company's capital expenditure skyrocketed 91% year-on-year to RMB 27.48 billion, fueled by intensified investments in artificial intelligence (AI). During the earnings conference, Martin Lau, President of Tencent, unveiled that AI is now being utilized in diverse fields such as ad targeting, content recommendation, and game optimization. He further mentioned that Tencent aims to deepen the integration of AI within its advertising business to enhance click-through rates. Yuanbao, Tencent's prominent large model application, has garnered a significant user base and is poised to introduce innovative features. Additionally, the company intends to embed AI technology into its gaming portfolio. Despite encountering limitations in GPU resources, Tencent affirmed that its current inventory of high-end chips is adequate to cater to the training requirements of multiple model generations. The firm is actively optimizing inference efficiency and exploring tailored models to conserve computational power. Tencent holds the view that GPU leasing does not constitute the most viable AI business model in China and, as such, has not prioritized it within its business strategy.