# Tencent Holdings Ltd. and Alibaba Group Holding Ltd. earnings will be shaped by rising artificial intelligence investment costs and growing competition in China's AI sector.

*genai · news · 2026-05-08 · Bloomberg*

## Key points

- Tencent's annual earnings growth is projected to slow to the low-teen percentage range.
- Tencent's AI investment costs are expected to double, impacting profitability.
- Alibaba's valuation increasingly depends on long-term AI-driven monetization rather than immediate earnings.
- China's soft consumption outlook is adding pressure on Alibaba's near-term financial performance.
- DeepSeek's V4 AI model launch is intensifying competition in China's AI sector.

**Companies:** Tencent Holdings Ltd., Alibaba Group Holding Ltd.
**Countries:** China

[Read the full story on Bloomberg](https://www.bloomberg.com/news/articles/2026-05-08/tencent-alibaba-face-slowing-growth-as-ai-costs-mount)

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