Tencent bets its China WeChat and gaming expertise will help it win cloud business in Europe

Tencent has spent years evolving into a gaming and societal media elephantine successful China and successful the process, has built up its unreality computing capabilities.

The exertion steadfast is present looking to bring that expertise to Europe arsenic it ramps up enlargement of its unreality concern overseas, Dowson Tong, CEO of Tencent's unreality radical told CNBC.

"We person strengths and competence successful precise circumstantial exertion areas, arsenic good arsenic manufacture verticals," Tong said successful an interrogation past week. "These are are precise unsocial exertion capabilities that person been developed implicit galore years [and] started from our products successful China."

"So we mean to bring a batch of this exertion expertise to Europe. We're talking to a batch of funny imaginable customers."

Tencent's European propulsion volition transportation it against U.S. hyperscalers Amazon, Microsoft and Alphabet-owned Google, which collectively marque up 70% stock of Europe's unreality market.

But the Chinese steadfast is hoping to absorption connected circumstantial areas wherever it has built up capabilities to differentiate from rivals.

Tong said these see unreality technologies for areas similar optimizing video streaming, ensuring a creaseless gaming experience, and processing and hosting alleged "super apps" similar WeChat — China's biggest messaging service. WeChat is often seen arsenic the pioneer of ace apps, a word that refers to an exertion with aggregate functions, specified arsenic messaging and payments.

Tong gave an illustration of Tencent's unreality computing enactment with French telecommunications steadfast Orange successful supporting the company's Max it app successful Africa. In the country of gaming, Tencent's unreality exertion tin amended "latency," which is simply a method word for the lag betwixt a player's actions and what happens connected screen, Tong said.

The Chinese institution is besides betting connected European companies opting for aggregate unreality providers for services, alternatively of relying connected 1 oregon 2 of the large players.

"I would accidental that's really a ... deliberate strategy of ours to marque the customers consciousness much comfy utilizing our technology, particularly successful a multi-cloud environment," helium said, adding that customers privation to beryllium capable to interoperate.

Cloud computing companies person enactment an accrued absorption connected selling artificial quality tools arsenic a mode to boost gross and differentiate their offerings from rivals.

Tencent has built up its ain artificial quality foundational exemplary successful China called Hunyuan. But it besides uses immoderate models created by Chinese steadfast DeepSeek successful its products.

Tong said Tencent would instrumentality a akin attack successful Europe erstwhile it comes to AI, perchance offering products built connected European models.

"Our absorption would beryllium providing tools that would enactment with antithetic instauration models and ultimately, it's the customer's determination which exemplary works champion for them," Tong told CNBC.

"So I deliberation astatine the extremity of the day, we would ever spell to our customers, find the problems they wanted addressed, supply them tools truthful that they tin execute what they need, and realise the outgo ratio that we tin offer."