May 14th, according to Tencent Holdings’ Q1 2025 financial report released today, the company’s capital expenditures reached RMB 23 billion, primarily aimed at supporting the development of AI-related businesses. This move highlights Tencent’s continued commitment to deepening its foothold in the artificial intelligence sector, expected to further promote the integration and innovation of AI technology across various business segments.

The financial report indicates that Tencent Group generated free cash flow of RMB 47.1 billion in the first quarter of 2025, with net cash provided by operating activities reaching RMB 76.9 billion. However, some funds were offset by capital expenditures, media content payments, and lease liabilities payments. Among these, the RMB 23 billion capital expenditure was particularly directed towards AI-related businesses, demonstrating Tencent’s active strategy to leverage AI technology to empower existing businesses and explore new growth opportunities.

Tencent Holdings stated that AI capabilities have already made substantial contributions to performance advertising and evergreen games. The company has increased its investment in new AI opportunities such as Yuanbao applications and AI within WeChat. It is anticipated that during the phase of strategic AI investment, the operational leverage brought about by high-quality revenue will help absorb the additional costs arising from these AI investments, maintaining financial stability.

In recent years, Tencent has continuously strengthened its efforts in the AI field through increased R&D investment, talent introduction, and strategic investments to enhance its AI technological capabilities. Previously, Tencent launched several AI-related products and services, such as Hunyuan Assistant, achieving notable progress in natural language processing, computer vision, and other areas. This significant financial investment in AI business is expected to accelerate technological breakthroughs and product innovations, providing users with smarter and more convenient experiences.

Furthermore, Tencent actively promotes the application of AI technology in industries like healthcare, finance, and education, aiding traditional sectors in digital transformation. Through in-depth cooperation with partners, Tencent’s AI technology is gradually permeating various fields, injecting new vitality into social and economic development.

Industry insiders believe that Tencent’s continuous investment in the AI field will help it maintain a leading position in the fiercely competitive market. As AI technology matures and expands its application scenarios, Tencent is poised to achieve coordinated development across all business segments through AI empowerment, creating greater commercial value.

Apart from AI business, Tencent’s Q1 financial report also showed steady growth in core businesses such as gaming and social networks. Revenue from the value-added services business grew 17% year-on-year to RMB 92.1 billion, with domestic market game revenue at RMB 42.9 billion, a 24% increase year-on-year from a low base last year; international market game revenue was RMB 16.6 billion, up 23% year-on-year (or up 22% at constant exchange rates). Social network revenue increased 7% year-on-year to RMB 32.6 billion.

Looking ahead, Tencent will continue to adhere to the philosophy of “Tech for Good”, increasing investment in frontier technologies such as AI, continuously exploring innovations, and creating more value for users, industries, and society.