Tencent Holdings Ltd. reported a significant increase in profits for the fourth quarter of 2024, driven by its focus on artificial intelligence (AI) development. The company's revenue rose 11% year-over-year to RMB172.4 billion, surpassing analyst expectations. This growth was fueled by robust performance in its gaming and social network businesses, as well as an AI-powered advertising platform. The company announced plans to boost its capital expenditure in 2025, with a particular emphasis on AI infrastructure. Tencent's capital spending for the fourth quarter surged 386% year-over-year to RMB36.6 billion, reflecting its commitment to AI development. For the full year, capital expenditure more than tripled to RMB76.8 billion, setting a new annual record. Tencent's strategic shift towards AI is evident in its financial results, with the company also investing heavily in research and development, spending RMB70.7 billion in 2024. The company's AI initiatives include the development of the Hunyuan model with trillion parameters, the T1 reasoning model, and the Turbo S regular model, which are being integrated into its applications for enhanced search, voice input, and content generation capabilities. Tencent's AI efforts have attracted 200 million monthly active users.