Tencent is betting big on national AI champions

By the Editorial Team · Tuesday, July 28, 2026

Tencent Holdings has redirected its investments from traditional internet companies to leading AI startups in China, including significant funding rounds for firms like Kling AI, Moonshot AI, DeepSeek, and Manus. This strategic shift highlights Tencent’s commitment to strengthening its role in China’s rapidly growing AI sector amid evolving market and regulatory conditions.

Tencent Holdings is intensifying its focus on artificial intelligence by shifting investment away from traditional internet ventures toward emerging AI leaders within China’s technology sector. This strategic adjustment reflects the company’s commitment to expanding its presence in the evolving AI market.

In recent weeks, Tencent reduced its stake in Kuaishou Technology but simultaneously participated in a US$3 billion funding round for the company’s AI video subsidiary, Kling AI, underscoring its targeted interest in AI-driven enterprises.

Among Tencent’s notable AI investments is Moonshot AI, an early-backed unicorn known for its Kimi K3 model, which has attracted significant attention. Moonshot AI is preparing for a Hong Kong initial public offering (IPO) and is expected to conclude its latest funding round with a valuation near US$30 billion. This move signals confidence in domestic AI innovation.

Tencent also joined DeepSeek’s substantial US$7 billion Series A round in June, infusing approximately 10 billion yuan (HK$1.16 billion) into the Hangzhou-based startup. DeepSeek is valued at nearly US$60 billion and is reportedly considering another funding round at a valuation around US$70 billion, alongside plans for a Shanghai Star Market listing.

In a related development, Tencent is moving to increase its stake in Manus, a developer of general AI agents. After Beijing blocked Meta Platforms’ attempted US$2 billion acquisition of Butterfly Effect, Manus’s parent company, original investors have sought to regain control. Tencent, which made its initial investment in Manus in 2024, aims to become the largest external shareholder.

Tencent’s early-stage investments have also benefited from market gains. The company holds a 1.58 percent post-IPO stake in Beijing-based AI model developer Zhipu AI, following its participation in Zhipu’s Series B4 funding round with a 200 million yuan injection. Zhipu experienced a rise exceeding 1,000 percent in its stock price since its Hong Kong listing in January. Similarly, Tencent owns 2.58 percent of Shanghai-based MiniMax, another AI model firm that has seen its share price increase by approximately 130 percent post-IPO.

In the AI hardware domain, Tencent retains a significant position in Shanghai Enflame Technology, an AI chip startup. With a 20.26 percent stake, Tencent is Enflame’s largest external shareholder and its main customer, anticipated to account for 84 percent of the chipmaker’s revenue in 2025. Enflame recently received regulatory approval for a listing on the Shanghai Star Market and is considered one of China’s leading AI chip developers.

Finally, Tencent holds a 3.56 percent stake in Shanghai’s Lightelligence, a pioneering photonics chipmaker that went public in Hong Kong in April. Since its debut, Lightelligence’s stock has climbed nearly 170 percent, further illustrating the company’s expanding AI portfolio.

Tencent’s evolving investment strategy reflects a broader pivot toward AI, demonstrating its intent to back national champions across key segments of the technology ecosystem amid ongoing regulatory and market changes.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.