Tencent Holdings (HKG:0700, OTC:TCEHY) has launched Hunyuan Turbo S, its latest AI model, as competition heats up in the US-China tech race.
The new system is designed for instant responses, setting it apart from DeepSeek’s deep reasoning approach. Tencent also claims deployment costs have fallen significantly.
DeepSeek, founded just 20 months ago, has shaken the AI sector, matching top models from OpenAI and Meta.
Its rapid rise has sparked a wave of new AI developments, particularly in China, where firms have struggled to keep up with the US.
Despite Tencent’s push, analysts reckon its AI ventures will remain unprofitable for the foreseeable future, with Hunyuan Turbo S unlikely to have a major impact on earnings.