- Tencent Cloud Partners with Ryt Bank to Deliver AI-Powered Banking in Malaysia
May 11, 2026
HONG KONG, May 11, 2026 /PRNewswire/ -- Tencent Cloud, the cloud business of global technology company Tencent, today announced it has partnered with Ryt Bank, the world's first AI-powered bank in Malaysia, delivers a conversational banking experience for everyday payments. Leveraging Tencent Cloud Chat (IM) as its real-time communication foundation, Ryt Bank will deliver an advanced conversational banking experience to users in Malaysia, ensuring the secure and stable transmission of AI commands and transaction information.
Shaping the Next Chapter of Digital Banking Ryt Bank was established to reimagine how modern digital banking should work – where financial services are fast, intuitive, and always available. The goal is to reduce unnecessary complexity in everyday banking interactions, achieving a "Zero User Interface (Zero-UI)" model where a traditional 8-step process is reduced to a single sentence. For example, instead of navigating complex menus, users can simply state, "Send RM100 to Amelia," and the system executes the transaction. To support this, Ryt Bank partnered with Tencent Cloud. Its conversational platform utilizes Tencent Cloud Chat (IM), which is built on the same messaging technology that powers the Tencent ecosystem globally, serving over 1 billion monthly active users and processing more than 550 billion messages per day at peak.
Driving Rapid Growth with Proven Performance Building on this foundation, Tencent Cloud provides a comprehensive suite of features to ensure business continuity and a seamless user experience. This stability proved critical on the launch day of Ryt Bank, when Tencent Cloud Chat (IM) supported the platform in managing a traffic surge from 50,000 active users with zero downtime. This robust performance has fueled Ryt Bank's rapid growth. In just over 7 months since its launch, the bank has surpassed 1.2 million users, with nearly half of Ryt Bank customers actively engaging with its core innovation, Ryt AI. Developed in partnership with YTL AI Labs and built on ILMU, Malaysia's sovereign AI model, Ryt AI has become an integral part of users' daily banking experience, enabling conversational banking at scale.
Ensuring Enhanced Security and Global Reach Security and compliance remain paramount in the financial industry. Tencent Cloud Chat (IM) offers a stable and reliable communication infrastructure to protect every transaction with enhanced security. All data is protected with end-to-end, high-performance encryption and supports complete message auditing for full traceability, ensuring the process is safe, seamless, and meets stringent banking standards. With a global network of over 3,200 acceleration edge nodes and localized infrastructure, Tencent Cloud delivers a smooth, low-latency user experience. The platform's support for Malay, English, and Chinese further enables Ryt Bank to serve its diverse user base effectively.
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Kenneth Siow, Regional Director for Southeast Asia and General Manager for Singapore & Malaysia at Tencent Cloud International said, "Southeast Asia is a key hub for digital innovation, and we are proud to support ambitious pioneers like Ryt Bank in creating a future-forward banking experience. This collaboration highlights our commitment to empower local businesses in Malaysia and across the region to build the next generation of services by providing the robust and high-speed infrastructure they need to create enhanced customer experiences."
Wilson Soon, interim CEO of Ryt Bank said, "Our mission is to empower Malaysians to drive intelligent, AI-powered banking, delivering smarter, faster finance and real impact for all. Tencent Cloud has been a strategic partner in achieving this goal. The Tencent Cloud Chat (IM) feature was straightforward to integrate, providing the stable, low-latency communication required to handle high-concurrency transactions smoothly, which is fundamental to our growth and our ability to strengthen customer trust."
Tencent Cloud is dedicated to empowering the global enterprise community through its advanced, high-performance solutions. With a fast-growing international presence covering over 80 countries and regions, Tencent Cloud will continue to introduce its core technologies to overseas markets, helping clients across industries accelerate their intelligent transformation and achieve sustainable business growth.
About Tencent Cloud: Tencent Cloud, one of the world's leading cloud companies, is committed to creating innovative solutions to resolve real-world issues and enabling digital transformation for smart industries. Through our extensive global infrastructure, Tencent Cloud provides businesses across the globe with stable and secure industry-leading cloud products and services, leveraging technological advancements such as cloud computing, Big Data analytics, AI, IoT, and network security. It is our constant mission to meet the needs of industries across the board, including the fields of gaming, media and entertainment, finance, healthcare, property, retail, travel, and transportation.
About Ryt Bank: Ryt Bank is a next-generation AI-powered digital bank backed by YTL Power International Berhad, in partnership with Sea Limited. Ryt Bank is committed to making banking simple, intuitive and accessible for all Malaysians through technology.Cision
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- Tencent Earnings Growth Seen Slowing As AI Investments Double
May 8, 2026
This article first appeared on GuruFocus.
Tencent Holdings (TCEHY) and Alibaba Group (NYSE:BABA) are moving into earnings season with investors focused less on the AI headline and more on the cost of staying in the race. After DeepSeek's high-profile V4 model launch, China's artificial intelligence market appears to be entering a more expensive and competitive phase, where the biggest internet platforms may need to keep spending heavily just to defend their positions. That could make the next earnings updates a key test of how much AI investment pressure Tencent and Alibaba can absorb before investors start questioning the near-term payoff.
Is TCEHY fairly valued? Test your thesis with our free DCF calculator.
For Tencent, Bloomberg Intelligence expects full-year earnings growth to slow into the low-teen percentage range as AI investments double. That does not mean the AI story is broken, but it could mean the earnings curve is becoming more complicated. Investors may now have to weigh Tencent's long-term AI positioning against a more immediate drag from higher spending, especially as competition in China's AI sector heats up. Alibaba faces its own pressure point, with China's soft consumption outlook weighing on the company's setup. Bloomberg Intelligence said Alibaba's richer valuation depends more on longer-dated, AI-driven monetization than near-term earnings delivery, which could leave the shares more exposed if investors do not see a clearer path from AI investment to future returns.
The cloud story may not offer the simple earnings offset investors might have hoped for. Bloomberg Intelligence said rising cloud-computing demand is unlikely to deliver material upside to Tencent's or Alibaba's cloud earnings in 2026, with intense competition and margin pressure still limiting the benefit. That puts more attention on how both companies manage the balance between AI ambition and profitability, particularly as Tencent and Alibaba are also in talks to join DeepSeek's maiden funding round, according to a person familiar last month. For investors, the core issue is not whether China's AI race is gaining momentum. It is whether that momentum could translate into durable monetization fast enough to justify the rising cost of participation.
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- Esports Industry Analysis Report 2026 - Global $17.42 Bn Market Trends, Opportunities, and Forecasts, 2021-2031F
May 8, 2026
Company Logo
The global esports industry presents strong growth opportunities through increased viewership, mainstream media integrations, and diverse revenue streams, despite regulatory challenges. Key expansion areas include mobile esports and wider audience reach, supported by major players like Tencent and Riot Games.
Esports MarketEsports Market·GlobeNewswire Inc.
Dublin, May 08, 2026 (GLOBE NEWSWIRE) -- The "Esports Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031F" has been added to ResearchAndMarkets.com's offering.
The Global esports market is anticipated to expand from USD 3.64 billion in 2025 to USD 17.42 billion by 2031, reflecting a compound annual growth rate of 29.81%.
Esports involves structured, professional-level competitive video gaming that is frequently watched by international audiences. This industry's rapid expansion is mainly fueled by broader internet access worldwide, the surging popularity and mainstream acceptance of video games, and ongoing improvements in hardware and streaming capabilities. Furthermore, lucrative prize pools and the growing professionalization of competitive leagues draw considerable investment and top-tier talent.
Highlighting this global institutionalization, the International Esports Federation reported that its membership had grown to 151 nations by March 2025. A major obstacle that might slow down the market's continuous growth is the persistent variation in regulatory guidelines across different countries. The absence of standardized governance creates complications for organizing international tournaments, facilitating cross-border player transfers, and enforcing consistent integrity protocols, which could ultimately restrict wide-scale commercial progress and the enduring stability of the international esports environment.
Market Drivers
The growth of the worldwide esports sector is largely driven by surging viewership and strong fan interaction, helping the industry draw wider audiences and cement its status within mainstream entertainment. The soaring interest from spectators is demonstrated by the massive reach of premier competitions that captivate millions of loyal followers.
Illustrating this point, Field Level Media reported in January 2026 that the 2025 Esports World Cup attracted 750 million global viewers and accumulated 350 million hours of watch time, highlighting the immersive quality and immense international popularity of competitive gaming. This elevated level of engagement creates lucrative prospects for media rights, sponsorships, and advertising, which in turn drives further financial backing and infrastructure enhancements across the ecosystem.
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At the same time, growing financial investments and varied income sources play a crucial role in maintaining and scaling the international esports market. Substantial funding from a range of participants, such as non-endemic sponsors, game developers, and esports organizations, is boosting event production values, player compensation, and tournament prize money. This influx of capital fosters industry innovation and establishes a highly professional, appealing landscape for competitors.
Emphasizing this development, the Esports World Cup announced in January 2026 that its 2026 edition would offer an unprecedented $75 million prize pool, incentivizing elite players and heightening the level of competition. The formalization of the industry is additionally evidenced by massive participation metrics; as noted by Pocket Gamer in April 2026, over 100,000 individuals are projected to compete in the worldwide qualifiers for the 2026 Esports Nations Cup.
Market Challenges
The lack of cohesive regulatory systems across different countries acts as a major barrier to the ongoing growth of the worldwide esports industry. These varying methods of governance make it difficult to create uniform structures for international tournaments, obstruct smooth cross-border player transfers, and disrupt the reliable enforcement of competitive integrity standards. Without unified regulations, teams and event organizers face logistical difficulties that directly hinder their capacity to effectively manage global talent and expand competitions.
Ultimately, these differences in regulations restrict extensive commercial progress and threaten the enduring viability of the international esports environment. To illustrate, Esports Charts reported that competitive gaming events distributed more than $270 million in prize pools throughout 2025. However, the disjointed landscape caused by conflicting rules prevents these massive financial contributions from reaching their maximum impact, because logistical and legal obstacles can discourage fresh capital and constrain global partnerships or broadcasting agreements. Consequently, this environment delays the industry's overall maturation and narrows the worldwide expansion of competitive gaming.
Market Trends
The growth of the mobile esports sector is dramatically altering the worldwide competitive gaming environment by increasing accessibility and drawing in fresh audiences of spectators and competitors. The widespread global use of smartphones has revolutionized the industry by enabling massive participation and building strong regional communities, especially in developing economies where mobile internet usage frequently exceeds traditional console or PC availability.
This surge broadens both the audience and the array of talent, fueling expansion in an area separate from traditional esports. For example, Gamer Area highlighted in November 2024 that the PUBG Mobile Global Championship 2024 featured a $3,000,000 prize pool, demonstrating the high level of professionalization and significant financial backing present in mobile competitive gaming today.
The rising integration with mainstream media represents a vital stage in the evolution of the global esports industry, shifting competitive gaming away from strictly niche internet streaming services and toward traditional television broadcasting networks. This movement indicates that conventional media companies are increasingly comprehending and embracing esports, allowing for greater visibility among demographics that do not typically use specialized gaming websites.
This kind of media crossover enhances the credibility of competitive gaming and broadens its economic viability past its primary fan base, pulling in fresh sponsors and advertisers who want to reach this growing viewership. Highlighting this shift, BLAST.tv noted in November 2024 that the BLAST Premier World Final 2024 utilized digital broadcast partnerships to air in more than 150 regions, illustrating a concrete effort to establish a larger footprint in global traditional media.
Key Attributes:
Report Attribute Details No. of Pages 180 Forecast Period 2025 - 2031 Estimated Market Value (USD) in 2025 $3.64 Billion Forecasted Market Value (USD) by 2031 $17.42 Billion Compound Annual Growth Rate 29.8% Regions Covered Global
Report Scope
Key Market Players:
Tencent Holdings Ltd Activision Blizzard, Inc Electronic Arts Inc Riot Games, Inc Epic Games, Inc Valve Corporation Sony Interactive Entertainment LLC Microsoft Corporation FaZe Clan Inc Team Liquid Enterprises B.V
Esports Market, By Revenue Stream:
Sponsorship Media Rights Advertising Publisher Fees Merchandise and Tickets Streaming
Esports Market, By Audience Type:
Occasional Viewers Esports Enthusiasts
Esports Market, By Device:
Smartphones PCs Tablets Gaming Consoles
Esports Market, By Region:
North America Europe Asia Pacific South America Middle East & Africa
For more information about this report visit https://www.researchandmarkets.com/r/kuofbx
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Attachment
Esports Market
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- Tencent Holdings SEHK 700 Valuation Check As Shares Face Multi Timeframe Weakness
May 7, 2026
Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge.
Recent share performance and business mix
Tencent Holdings (SEHK:700) has seen its share price under pressure recently, with the stock showing negative returns over the past week, month and past 3 months, which may prompt investors to reassess the business.
At a last close of HK$463.00, the company’s market value stands at about HK$4.18b, supported by annual revenue of HK$751.77b and net income of HK$224.84b, according to the latest available figures.
Tencent’s value-added services segment contributes HK$369.28b of revenue, followed by fintech and business services at HK$229.44b. Marketing services and other activities account for HK$144.97b and HK$8.08b respectively.
Geographically, the group remains heavily focused on Mainland China, which generates HK$662.12b of revenue. Other regions contribute HK$89.65b, underlining the company’s reliance on its home market.
See our latest analysis for Tencent Holdings.
The recent 1 day share price return of 1.95% decline and 30 day share price return of 5.36% decline sit against a 1 year total shareholder return of 4.65% decline and a 3 year total shareholder return of 43.94%. This suggests that short term momentum is fading while longer term holders still sit on gains overall.
If you are weighing up Tencent alongside other opportunities in connected sectors, it can be useful to see how specialist AI infrastructure providers are trading through a curated list of 38 AI infrastructure stocks.
With Tencent trading below some valuation estimates and the share price under pressure over multiple time frames, you need to decide: is this weakness pointing to an undervalued stock, or is the market already pricing in future growth?
Most Popular Narrative: 43.1% Undervalued
Against a last close of HK$463.00, the most followed valuation narrative, according to kapirey, points to a fair value of HK$813.65. This implies a large gap between price and narrative value.
Weixin
Video Accounts, Mini Games and Weixin Search enhance user value by creating seamless connections with products, services and content while presenting exciting revenue opportunities.
Generating high margin revenue streams from own traffic, with platform costs already paid for.
Read the complete narrative.
Curious what kind of revenue path and margin profile are baked into that fair value, and how fast profits are assumed to ramp? The narrative spells out a detailed earnings glide path, plus the profit multiple it believes Tencent can sustain.
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Result: Fair Value of HK$813.65 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this bullish narrative still faces risks, including the recent US military blacklist designation and evolving AI regulations in China that could affect Tencent’s international growth plans.
Find out about the key risks to this Tencent Holdings narrative.
Next Steps
With sentiment mixed and the share price under pressure, it may be useful to act promptly and assess the situation by reviewing the numbers yourself using our breakdown of 4 key rewards
Looking for more investment ideas?
If Tencent has sharpened your appetite for opportunities, do not stop here. Broaden your watchlist with stocks filtered for quality, income and potential mispricing.
Target potential mispriced opportunities by scanning a curated set of 222 high quality undervalued stocks. Strengthen your focus on capital preservation by reviewing 307 resilient stocks with low risk scores that score well on resilience. Hunt for future standouts early by checking the screener containing 545 high quality undiscovered gems that meet strict fundamental tests.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include 0700.HK.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- DeepSeek value could be up to $50 billion in first fundraising, sources say
May 6, 2026
STORY: Chinese AI startup DeepSeek could be valued at as much as $50 billion in its opening fundraising drive.That's according to three sources.The large language model builder aims to reverse its years-long strategy of rejecting outside funding.In talks to be the lead investor is China's $8.8 billion national AI fund, said one of the sources familiar with the matter.Separate sources said the start-up could raise $3 to $4 billion from the funding round to fuel its computing capabilities and improve employee benefits.The sources added Chinese tech giant Tencent Holdings has also been in talks to invest in the startup.DeepSeek did not immediately respond to Reuters requests for comment.The China Integrated Circuit Industry Investment Fund, which is the main banker of the national AI fund, and Tencent both declined to comment.The fundraising comes at a time when DeepSeek is losing ground to domestic competitors that have raised billions from either private or public markets.
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- Interactive Game Streaming Strategic Intelligence Report 2026 Featuring Twitch, EA, Epic Games, Microsoft, NetEase, Nintendo, Roblox, Sony, Take-Two Interactive, Tencent, Ubisoft
May 6, 2026
Company Logo
Interactive streaming offers key market opportunities by transforming video game streaming into an interactive experience where audiences can actively influence outcomes. This shift fosters interaction-driven revenue models, emphasizing user participation over passive content consumption. Companies that successfully integrate audience interactivity will lead in this evolving entertainment landscape.
Dublin, May 06, 2026 (GLOBE NEWSWIRE) -- The "Strategic Intelligence: Deep Dive into Interactive Game Streaming" report has been added to ResearchAndMarkets.com's offering.
Interactive streaming is not an evolution of video, but a structural shift toward participatory entertainment. Video game streaming is moving beyond passive consumption into systems where audiences actively shape outcomes, redefining entertainment from something watched to something experienced.
Key Highlights
The ability to capture, process, and execute audience input within milliseconds creates a feedback loop between the viewer and the game, transforming streams into dynamic, responsive systems rather than one-way broadcasts. As audiences gain the ability to influence gameplay, value shifts from what is shown to what users can do, accelerating the rise of interaction-driven revenue models and reducing the efficacy of content-only strategies.
Report Scope
Interactive game streaming builds on traditional video streaming, adding a new layer: interaction. This deep dive focuses on the interaction layer, the core innovation that transforms live game streaming from a passive viewing activity into an active, participatory environment.
Reasons to Buy
Interactivity is fueling mass participatory systems. The future is not about better engagement tools; it is about integrating audiences into the core gameplay. Winning in interactive game streaming will depend on who can convert viewership input into live interactivity. This report will help you understand this disruptive theme and position your company for success.
Key Topics Covered:
Executive Summary Overview of Interactive Game Streaming The Interaction Layer Applications and Use Cases Future Winners and Losers Glossary Further Reading Report Authors Thematic Research Methodology
Companies Featured
Amazon (Twitch) Electronic Arts Epic Games Microsoft NetEase Nintendo Roblox Sony Take-Two Interactive Tencent Ubisoft
For more information about this report visit https://www.researchandmarkets.com/r/9fp24w
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
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- North American AI Data Center Expansion Drives 2026 CapEx of Top Nine CSPs to US$830 Billion, Says TrendForce
May 6, 2026
NEW YORK, May 6, 2026 /PRNewswire/ -- TrendForce's latest findings on the AI industry highlight that several major North American CSPs have recently raised their 2026 capital expenditure (CapEx) guidance in response to strong AI demand. As a result, TrendForce has revised its forecast for the combined CapEx of the world's top nine CSPs—Google, AWS, Meta, Microsoft, Oracle, ByteDance, Tencent, Alibaba, and Baidu—up to approximately US$830 billion in 2026, with the annual growth rate raised from 61% to 79%.
Taking a look at the four major U.S. CSPs, Microsoft has increased its CapEx outlook to $190 billion, implying approximately 130% YoY growth. Around roughly $25 billion is attributable to rising component costs. Similarly, Google has raised its guidance from $175–185 billion to $180–190 billion, with growth exceeding 100%. Meta has revised its CapEx range upward from $115–135 billion to $125–145 billion, representing approximately 85% YoY growth. Lastly, AWS is expected to exceed $230 billion in CapEx this year, with growth of over 50% driven by demand for AI cloud services.
TrendForce notes that the pace of CapEx expansion among North American CSPs exceeds the global average, underscoring that AI infrastructure has become a core long-term strategic priority. Investment is increasingly concentrated in the deployment of high-performance GPU clusters, in-house ASIC development, and next-generation data centers designed to support high-power-density computing.
The sharp rise in CapEx also signals sustained momentum in data center construction, led primarily by AWS, Microsoft, Google, Meta, and Oracle. As of the end of 2025, these five North American CSPs had deployed 800–900 data centers globally, with AWS accounting for the lion's share.
Among Chinese CSPs, Alibaba and ByteDance are the main drivers of expansion—though their strategies diverge. Alibaba is focusing on localized nodes and sovereign cloud offerings through Alibaba Cloud to penetrate emerging markets. Since announcing expansion plans in 2025, the company has established new regions in Brazil, France, and the Netherlands, enlarging its global footprint to 29 regions and 94 availability zones.
In contrast, ByteDance is aggressively expanding overseas through TikTok, with operations established across eight countries, including the U.S., Brazil, and Ireland, and major investments in Europe, Thailand, and Malaysia. This makes it the most geographically aggressive Chinese CSP.
TrendForce further notes that sustained AI demand will continue to drive global data center growth, with total installed power capacity expected to reach approximately 155 GW in 2026 (~+29% YoY). AI servers are also projected to surpass general-purpose servers in total electricity consumption in 2026 due to significantly higher power consumption per unit.
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Further jumps in power consumption are expected in 2027–2028 as platforms such as GB300/Rubin and ASIC-based AI servers enter mass production. This trend will, in turn, support growth in key components such as HVDC power systems and liquid cooling systems.
For more information on TrendForce's semiconductor reports and market data, please visit the Report Page, or Email (SR_MI@trendforce.com) the Sales Department.
For more on the latest technology industry news and trends, please visit News.
About TrendForce
TrendForce is a global leader in technology industry analysis and consulting services. With deep expertise spanning foundry, DRAM, HBM, NAND Flash, AI servers, robotics, near-eye displays, display panels, LEDs, MLCC, and green energy, it also offers in-depth research into key market drivers such as AI, automotive technologies, 5G/6G communications, LEO satellites, and the IoT.
Backed by a team of top industry professionals, TrendForce has been at the forefront of global market research for over 25 years. More than 60% of its clients are among the world's top 500 companies.
TrendForce's global footprint includes Taipei, Shenzhen, Silicon Valley, New York, and Tokyo. With timely and strategic industry analysis, TrendForce delivers the critical information that empowers businesses to make smarter, faster decisions.
CONTACT: pengchen@trendforce.comCision
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- DeepSeek could be valued at up to $50 billion in first fundraising, sources say
May 6, 2026
May 6 (Reuters) - Chinese AI startup DeepSeek could be valued at as much as $50 billion in its maiden fundraising drive, three sources said, as the large language model builder seeks to reverse its years-long strategy of rejecting outside funding.
China's 60-billion-yuan ($8.8 billion) national artificial intelligence fund, founded in January last year, is in talks to be a lead investor in DeepSeek's fundraising, said one of the sources familiar with the matter.
The start-up could raise $3 billion to $4 billion from the funding round to fuel its computing capabilities and improve employee benefits, said separate sources with knowledge of the matter.
Chinese tech giant Tencent Holdings has also been in talks to invest in DeepSeek, said the sources, who all declined to be named as the information is confidential.
DeepSeek did not immediately respond to Reuters requests for comment.
The China Integrated Circuit Industry Investment Fund, which is the main banker of the national AI fund, declined to comment. Tencent declined to comment.
The Financial Times first reported on Wednesday, citing sources, the China Integrated Circuit Industry Investment Fund is in talks to lead DeepSeek's first fundraising that could value the frontier AI lab at about $45 billion.
($1 = 6.8110 Chinese yuan renminbi)
(Reporting by Reuters Staff; Editing by Sumeet Chatterjee and Louise Heavens)
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- DeepSeek nears $45bn valuation as China’s ‘Big Fund’ leads investment talks
May 6, 2026
China’s biggest state-backed semiconductor investment vehicle is in talks to lead the financing of DeepSeek’s first fundraising that could
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- ‘Grand Theft Auto’ maker Take-Two plots its next move in a consolidating gaming industry
May 4, 2026
Consolidation is all the rage in the video game world these days. In the past year, Ubisoft created a new gaming subsidiary with Chinese tech giant Tencent, while Electronic Arts announced a $55 billion deal led by Saudi Arabia’s Public Investment Fund that will take the company private. An industry that, just a decade ago, included more than a dozen publicly traded game makers now has only a handful left.
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Take-Two Interactive Software has managed to remain independent while rivals, including Activision-Blizzard and EA, have been absorbed. And as it continues digesting its 2022 acquisition of Zynga, CEO Strauss Zelnick says the company is already eyeing its next acquisition target.
However, he says, that could still be a couple of years away.
“I think for the next couple of years, our story will be one of organic growth, but then if we do things right, we’d be in a position to [do] something inorganic as well,” he tells Fast Company. “But would we be interested in growing? Of course.”
As expected, Zelnick declined to name specific targets, but acknowledged the company already has some in mind.
“We have our eye on a couple opportunities, but . . . they may not be around at that time,” he says. “And there are no guarantees. But I think there still would be some opportunity, no matter what.”
What he did concede is that whenever Take-Two next opens its checkbook, it will likely be focused on app shopping. Mobile gaming now accounts for half of the company’s revenue.
“There are a couple—I’m not going to name names—but there are a couple in the mobile space we’re very impressed with. Less so on the console side,” he says.
Organic growth
Part of the reason for any acquisition delay may simply be that Take-Two will be fully occupied over the next year or two with the launch of Grand Theft Auto VI. The latest installment in one of entertainment’s most lucrative franchises is scheduled for release on Nov. 19.
At the recent iicon conference, an invitation-only summit for video game industry leaders, Zelnick said marketing for the game would begin “soon,” suggesting further delays are unlikely.
Expectations are ludicrously high. Its predecessor, released in 2013, has sold more than 225 million copies and generated nearly $10 billion in revenue for Take-Two. It was still the industry’s 11th best-selling game in March, according to Circana, an astonishing feat for a title more than a decade old. Most games are fortunate to remain on sales charts for a few months. Few last beyond a year.
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New challenges
Of course, there is always the possibility that someone could attempt to buy Take-Two itself. Zelnick acknowledges that, but downplays the likelihood, pointing to the company’s dramatic growth since he took over 18 years ago.
“We’ve always been at risk of someone wanting to own us because we’re public and not controlled,” he says. “We’re here for the shareholders. The best protection in terms of remaining independent is doing a great job. When we bought the company, the stock was $11. Today it’s $213. And if we continue to create value in the company, there would be no reason for someone to take it over and it would be hard for them to take it over.”
Part of the challenge in sustaining those financials, even with GTA VI looming, is adapting to shifting player habits. Mobile continues to expand, while console gaming no longer dominates the way it once did. And amid speculation that GTA VI could carry a significantly higher price tag than most major releases, Take-Two will need to stay especially attuned to player behavior.
“The truth is, for the console side of our business, it’s very clear that business is opening up,” Zelnick says. “PC is becoming a more and more important format for what were previously console releases, with a little PC on the side. And now it’s become like PC is becoming the main course. That’s not lost on us at all.”
Despite that shift, there are still no plans to launch GTA VI on PC simultaneously with its console debut. It will eventually arrive on the platform, but there is still no timeline, nor much explanation for the staggered release.
“All of our major titles ultimately make it to PC,” says Zelnick. “In the case of Grand Theft Auto VI, we’re obviously only launching on two consoles, so … there are clearly business reasons to do that.”
This post originally appeared at fastcompany.com
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