Tencent Q1 profit jumps 21 percent as AI bets pay off despite rising costs

AI upgrades fuel profits but margins are under pressure

Tencent reported a 21% jump in quarterly net profit to 58.1 billion yuan, crediting its heavy push into artificial intelligence. The company is racing to upgrade its models and may expand into startups, even as AI spending rises and weighs on margins. The latest results highlight how bets on AI are now translating into shareholder gains.