Tencent, Alibaba Face Slowing Growth as AI Costs Mount

Tencent Holdings Ltd. and Alibaba Group Holding Ltd. earnings will be shaped by rising artificial intelligence investment costs and growing competition in China’s AI sector, following DeepSeek’s high-profile V4 model launch.

Tencent’s full-year earnings growth is expected to slow to the low-teen percentage range as AI investments double, according to Bloomberg Intelligence. Alibaba faces pressure from China’s soft consumption outlook, with BI saying its richer valuation relies more on longer-dated, AI-driven monetization than near-term earnings delivery.