Tencent Executive: AI Competition is a Marathon, Not a Sprint

Tencent Group's Senior Executive Vice President and CEO of the Cloud and Smart Industries Group, Daniel Tu (Tang Daosheng), has responded to external commentary suggesting the company is lagging in artificial intelligence (AI) development. In an internal article, Tu stated that the AI competition is akin to a marathon rather than a sprint, highlighting that sustained effort is more crucial than an early start.

Tu acknowledged the rapid pace of the global large model competition and noted that competitors have gained significant traction in the business-to-business (B2B) market. He also cited insufficient computing power as a factor hindering the iteration of Tencent's "Hunyuan" large model and its product deployment, admitting that this has led to internal anxiety.

Despite these challenges, Tu believes the industry is in its nascent stages, with market structures and business models yet to be solidified. He asserted that the ability to make long-term investments and capture real-world scenario needs are critical for navigating market cycles. Tu also pointed out that while algorithms determine the ceiling, engineering capabilities dictate the speed of implementation, and that scenario application is Tencent's core advantage.

Earlier this year, Tencent Chairman and CEO Pony Ma had indicated that while the company might not have been the fastest to embrace AI, it was on the right track, building on its strengths. He compared the situation to past expansion efforts that did not always succeed. Ma also used a metaphor of a leaky boat to describe the company's initial AI efforts, indicating a need for faster progress.

Tu previously responded to criticism regarding Tencent's AI speed in June, admitting that different business lines within a complex organization operate at varying paces. He stated that the company is open to external feedback and suggestions, recognizing the existence of both fast and slow development cycles, as well as failures and explorations. Tencent remains committed to long-term strategy and a people-centric approach in its AI endeavors.