Chinese tech giant Tencent sees spending surge, defends potential ‘superior’ AI returns

Tencent posted significantly elevated spending in the June quarter as the Chinese technology company continues to build out computing capacity for its artificial intelligence initiatives. Capital expenditures rose 65% from the prior quarter to 52.8 billion yuan, equivalent to $7.8 billion, while free cash flow turned negative at 13.8 billion yuan during the period.
Company leadership defended the substantial investment outlay by emphasizing potential returns on AI-related spending. Chief Execut