# Tencent reported a 21% surge in quarterly net profit, reaching 58.1 billion yuan.

*genai · news · 2026-05-13 · The Economic Times*

## Key points

- Tencent reported a 21% year-on-year net profit increase to 58.1 billion yuan for Q1 2026.
- Tencent unveiled a major AI model upgrade in April, signaling intensified competition with Alibaba and ByteDance.
- Tencent is reportedly considering investment in DeepSeek, valuing the AI startup at up to $50 billion.
- Regulators conditionally approved Tencent's acquisition of Ximalaya, following an antitrust review this week.
- Despite AI investments, Tencent's AI revenue is not expected to be significant this year.

**Companies:** Tencent, Alibaba, ByteDance, DeepSeek
**Countries:** China

[Read the full story on The Economic Times](https://economictimes.indiatimes.com/tech/technology/china-tech-giant-tencent-sees-q1-profit-jump-after-ai-bets/articleshow/131061927.cms)

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