Tencent Upgrades AI Model to Compete With DeepSeek, Alibaba

Tencent’s chatbot Yuanbao, for example, integrates the open-sourced R1, which at one point helped the service become the country’s most downloaded free app on the iPhone.

Photographer: Qilai Shen/Bloomberg
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Tencent Holdings Ltd. unveiled an upgraded AI reasoning model, the latest bid by China’s most valuable company to compete for leadership in the country’s crowded artificial intelligence field.

The Shenzhen-based company rolled out the latest iteration of Hunyuan T1, which debuted last month in its chatbot app Yuanbao. T1 operates similarly to DeepSeek’s R1, the model that stunned Silicon Valley by matching the best from OpenAI and Meta Platforms Inc. at a fraction of the cost and computing power.