Tencent shares jump on reports of WeChat AI agent launch

(Sharecast News) - Shares in Tencent jumped more than 10% in Hong Kong on Tuesday after reports emerged that the company is nearing the launch of an AI agent within its flagship WeChat platform. The Shenzhen-headquartered tech conglomerate, which holds various investments across video gaming, AI, entertainment and internet-related services, is reportedly testing a prototype AI to help WeChat users complete tasks within the app, according to the Financial Times.

It is thought that users will be able to request the AI agent to help navigate through WeChat's network of millions of mini-apps.

The FT cited two people "with knowledge of the plan", who said that Tencent wants to start a compliance process for the launch as soon as this month.

The company, which has 1.4bn monthly active users, will then run external tests on small focus groups before a full public launch, the date of which has not yet been set.

Tencent is reportedly working fast to kickstart the compliance process as it attempts to keep up with competitors Alibaba and ByteDance, which have both added agentic functions to their apps Qwen and Doubao, respectively.

According to the FT's sources, while early tests of WeChat's prototype have been successful, the main sticking point is the challenge of securing enough computing power to support a public launch. Many of China's AI data centres were previously powered by Nvidia's semiconductors, which have now been banned for export into the country.

Shares in Tencent Holdings finished 10.5% higher at HKD481.60 by the close of play.