2 1 Shi Ji Jing Ji Bao Dao·2025-09-11 23:17Core Insights - In August, Tencent and Alibaba reported strong financial results, with AI becoming a new growth engine for both companies, leading to significant stock price increases [1][2][3] - Both companies are showcasing their AI investments as a strategic advantage, positioning themselves strongly in the AI landscape [2][4] Tencent's Performance - Tencent's marketing services revenue increased by 20% year-on-year, attributed to AI-driven advertising platform optimization [7] - The gaming sector, a core business for Tencent, has maintained over 20% growth for three consecutive quarters, with AI enhancing game content creation and user engagement [7][15] - Tencent's capital expenditure surged by 119% year-on-year to 19.1 billion RMB, primarily for AI-related business support, while still maintaining a strong cash flow from its core operations [15] Alibaba's Performance - Alibaba's cloud intelligence group reported revenue of 33.398 billion RMB, with a growth rate of 26%, the highest in three years, driven by increased demand for AI-related products [9][12] - AI-related products accounted for over 20% of Alibaba Cloud's external commercial revenue, with continuous triple-digit growth for eight consecutive quarters [9][12] - Despite a net profit decline of 18% to 33.51 billion RMB, Alibaba is heavily investing in AI and instant retail, leading to a significant cash outflow [12][14] Strategic Investments and Challenges - Both companies are heavily investing in AI, with Alibaba's strategy involving a saturation approach in AI and cloud services, impacting cash flow and profit metrics [16][17] - Tencent faces challenges in ensuring high returns on its substantial investments in AI, while also managing supply chain risks related to GPU availability [15] - Alibaba's aggressive investment strategy in AI and cloud services is seen as a long-term play, despite short-term financial pressures [13][16]