Tencent Better Placed Than DeepSeek in AI Value Creation -- Market Talk

Dow Jones01-16

0755 GMT - Tencent is better positioned than DeepSeek to create value from AI, as it can embed its Hunyuan model into revenue engines, Morningstar analyst Ivan Su says in a note. He notes that focusing too much on AI model capability benchmarks can be a distraction and miss the bigger picture. Tencent operates an integrated ecosystem across gaming, advertising, search, music and enterprise software, which produces a stream of proprietary user-behavior data each day. This allows the company to rapidly test improvements in its Hunyuan model, which translates to direct impact on user experiences and profit and loss performance. On the contrary, DeepSeek's models are impressive, "but pure model-based businesses are vulnerable to capability commoditization and experience much slower translation of capability into outcomes," Su adds. (jason.chau@wsj.com)

(END) Dow Jones Newswires

January 16, 2026 02:55 ET (07:55 GMT)

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