Tencent Releases Hy4 AI Model and Boosts AI Spending

Tencent Holdings Ltd. released Hy4 Preview, a new foundation AI model featuring 770 billion parameters and a 1 million-token context window. The company made the model's weights available via its cloud platform to integrate the technology into its chatbot and WorkBuddy tool.

In internal blind engineering tests, Tencent claims Hy4 Preview outperforms rival models GLM-5.3 from Z.AI Co. and Kimi K3 from Moonshot AI. However, the company noted that performance on third-party benchmarks varied when compared to Alibaba Group Holding Ltd.'s Qwen 3.8 Max.

To support these AI developments and the required computing hardware, Tencent increased capital expenditures on AI projects to 52.8 billion yuan, or approximately 7.9 billion dollars, in the quarter ending June. This represents a 176% increase in spending as the company competes with rivals like ByteDance in the enterprise AI market.