KUALA LUMPUR, March 17 (Bernama) -- Bursa Malaysia extended gains to a third consecutive session today, driven by broad-based buying across various sectors following the recent strong sell-off, in line with the performance of regional markets, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 15.66 points, or 1.04 per cent, to 1,527.81 from Friday’s close of 1,512.15. The benchmark index opened 5.43 points firmer at 1,517.58 -- its intraday low -- and peaked at 1,531.63 during the mid-morning session and maintained its momentum throughout the afternoon session. On the broader market, gainers thumped decliners 708 to 297, while 425 counters were unchanged, 994 untraded, and seven suspended. Turnover improved to 3.28 billion units worth RM2.40 billion from 3.24 billion units worth RM2.5 billion on Friday.
Key Developments:
- Tencent’s Yuanbao AI chatbot surpasses DeepSeek as the most downloaded free iPhone app in China.
- AI race heats up as three of the top five most popular apps in China are now AI chatbots.
- Tencent integrates DeepSeek’s R1 model into multiple platforms, including WeChat search and gaming AI assistants.
- Alibaba ramps up AI investment, committing US$53 billion to compete with Tencent and DeepSeek.
- Monetization remains unclear, as AI chatbots are currently free and widely available in open-source models.
Tencent’s Yuanbao AI Overtakes DeepSeek
Tencent Holdings Ltd. has officially overtaken DeepSeek in China's rapidly expanding AI chatbot market, with its Yuanbao AI chatbot now the most downloaded iPhone app in the country.
Tencent’s strategic AI integration—embedding Hunyuan AI tech and DeepSeek’s R1 reasoning model into multiple platforms—has boosted user adoption significantly.
This shift marks a new milestone in China’s intensifying AI competition, with AI bots now dominating three of the top five most downloaded apps in China, alongside ByteDance’s Doubao.
China’s AI Boom: DeepSeek’s Disruptive Impact
DeepSeek's R1 chatbot, launched a month ago, triggered an AI arms race among China’s tech giants.
- Alibaba Group Holding Ltd. responded by benchmarking its AI against DeepSeek and committing US$53 billion to AI development.
- Tencent leveraged DeepSeek R1 across its ecosystem, including:
- WeChat search
- AI-powered virtual companions in Peacekeeper Elite, a Tencent game with millions of users.
- Tencent launched Hunyuan Turbo, a faster AI model said to outperform DeepSeek.
Tencent’s AI advantage may stem from WeChat’s 1.4 billion users, helping drive mass adoption of Yuanbao AI.
The Business Challenge: Monetizing AI
While AI adoption is skyrocketing, how tech giants will monetize AI chatbots remains unclear.
- Most AI models, including DeepSeek R1, are open-source, allowing other developers to integrate them freely.
- Companies like Tencent, Alibaba, and Baidu are prioritizing user growth over immediate revenue generation.
- Possible monetization strategies include:
- AI-powered premium subscriptions.
- Enterprise AI solutions for businesses.
- AI-driven advertising and e-commerce integrations.
For now, the focus is on winning the AI user race, and Tencent has pulled ahead of Alibaba and Baidu despite making smaller AI investments than its rivals.
What’s Next?
China’s AI ecosystem is evolving rapidly, with DeepSeek’s rise sparking unprecedented competition.
- AI chatbot adoption is reshaping China’s app ecosystem, making AI one of the hottest sectors in tech.
- Tencent, Alibaba, and Baidu will likely continue expanding AI features across their platforms.
- Investors will watch closely to see how AI services evolve from free tools into revenue-generating businesses.
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