KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
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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