Business

Tencent Restructures AI Product Portfolio Amidst Rising Competition

Published February 23, 2025

Tencent Holdings, a major player in the Chinese tech industry, is making significant changes to its artificial intelligence (AI) product portfolio. This move comes as the company intensifies its efforts to remain competitive in a rapidly evolving market.

Recently, several of its applications, such as QQ Browser, the keyboard tool Sogou Pinyin, and the learning assistant Ima, have been transitioned to the company’s Cloud & Smart Industries Group (CSIG). Previously, these products were part of the Platform & Content Group. This transfer has been reported by the Chinese digital media outlet The Paper.

This restructuring follows the earlier shift of the AI chatbot Yuanbao into CSIG from the firm’s Technology Engineering Group. A representative from Tencent confirmed the company’s reorganization of its AI products.

This strategic revamp is seen as a way for Tencent to strengthen its AI offerings, especially with increasing competition from rivals like Alibaba and Baidu, as well as emerging startups such as DeepSeek.

The changes indicate a new direction in Tencent’s AI strategy, focusing more on enhancing user experience and actively seeking user feedback. According to Zhang Yi, the founder and chief analyst at iiMedia, "Unlike smaller startups, Tencent needs to deploy its AI capabilities across various applications to unlock better monetization opportunities rather than relying solely on extended testing phases."

By restructuring its AI product portfolio, Tencent aims to position itself more firmly in the marketplace and adapt to the swiftly changing technological landscape.

Tencent, AI, Restructure