Tencent Plans Cautious AI Spending After Results Beat Estimates

Tencent Holdings Ltd. promised prudence in AI spending despite faster-than-anticipated growth across its gaming and advertising businesses, suggesting China’s most valuable company intends to adopt a more measured approach to artificial intelligence development than many of its global rivals.

The country’s social media leader on Wednesday reported revenue jumped 15% to 184.5 billion yuan ($25.7 billion) in the June quarter, about 3% higher than analysts’ projections. That was driven by double-digit growth in most major business segments including advertising, which it attributed to AI-driven enhancements. It also beat expectations on net income, sending shares in major shareholder Prosus NV as much as 5% higher in Europe.