Tencent is an internet-based technology company driven by innovation and long-term R&D investment. It focuses on AI, cloud computing, big data and basic research, and on advancing technology, research and business models to create greater social value and support better lives and China's high-quality development.
Tencent's second-quarter 2026 financial results show that R&D spending reached 27.28 billion yuan ($4.1 billion), up 35 percent year-on-year. Capital expenditure rose 176 percent year-on-year and 65 percent quarter-on-quarter to 52.78 billion yuan, reflecting increased investment in AI. As of the end of June 2026, Tencent had published more than 98,000 patent applications and secured over 55,000 patent grants across major countries and regions. These cover AI, cloud computing, mobility and instant messaging. Its proprietary AI technologies, including the Hunyuan large language model, continue to advance.
Tencent follows a dual-track strategy of proprietary development and open source for its models. Since rebuilding its infrastructure in February 2026, Hunyuan has released a major model update approximately every two months. This year, it has introduced Hy3 preview, the official Hy3 release and Hy4 preview. By releasing preview versions first and following up with official releases, Tencent incorporates real-world feedback into development and improves its models through practical applications.
Despite its smaller parameter size, Hy3 delivers performance comparable to flagship models with two to five times as many parameters. Since its launch in July, it has consistently ranked among the world's top three models by token consumption. Hy4 preview has significantly expanded its model size, context length and training data, placing it among the leading open-source models. Designed for productivity, Hy4 preview was fully open-sourced upon release and retains affordable pricing. The next Hy4 model is also expected to launch soon.
As model development accelerates, Tencent is integrating AI across its core businesses. It aims to make AI agents digital companions for its 1.4 billion users and turn AI into a new source of productivity across industries.
This year, Tencent's AI products have moved beyond individual breakthroughs towards wider adoption. Yuanbao continues to evolve, while productivity agents WorkBuddy and CodeBuddy are growing rapidly. WeCom has launched its AI assistant Dayuan, while Weixin's native AI assistant Xiaowei is expanding its closed beta testing.
Productivity agents are emerging as a key growth area. Since its launch, WorkBuddy has undergone frequent updates, expanding its capabilities, enterprise reach and ecosystem. According to a report by Analysys, WorkBuddy recorded 85.34 million monthly visits in September 2026, leading China's desktop AI office agent market. Combined with CodeBuddy, monthly visits exceeded 110 million, taking Tencent's products into the sector’s 100-million-visit range.
WorkBuddy has also launched an open platform covering five areas: hardware, Buddy apps, experts, skills and connectors. More than 100 partners joined at launch.
Tencent's Yuanbao Search has also received a major upgrade and is now available to individual developers and enterprises through Tencent Cloud. Designed as a trusted information resource for the AI era, Yuanbao Search provides ready-to-use, reliable content retrieval for AI products across industries.
Alongside technological innovation, Tencent has made "promoting sustainable innovations for social value" a core development strategy. It uses digital technology and its platform capabilities to address social needs.
One example is Digital Jingdezhen: Porcelain Craft Adventure, a mini-game developed by Tencent in partnership with the Jingdezhen authorities. Billed as the world's first mini-game themed around a World Heritage nomination, it uses gaming technology and AI to tell the story of Jingdezhen's heritage.
Launched on July 25, 2026, the simulation game recreates key stages in Jingdezhen's porcelain industry during the Song, Yuan, Ming and Qing dynasties (960-1911). It combines AI-generated 3D porcelain, interactive AI-powered non-player characters (NPCs) and AI-powered procedural content generation (PCG) to recreate historical scenes. Players can explore traditional porcelain-making techniques and the city's ceramic heritage, helping bring cultural heritage and collective memory to wider audiences and preserve them for future generations.
