---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/28204274.md"
description: "$TENCENT(00700.HK) After carefully reviewing part of the financial report:In the fourth quarter, the Group generated free cash flow of RMB 4.5 billion. This was offset by net cash flow from operating activities of RMB 54.0 billion, capital expenditure payments of RMB 39.0 billion to support our AI project development, media content payments of RMB 8.5 billion, and lease liability payments of RMB 2.0 billion. What does this mean? My own understanding is that Q4's free cash flow was basically swallowed up by AI. To put it bluntly, apart from the 450+800 shareholder returns next year, the rest of the free cash flow will probably also be swallowed by AI.Overall, Tencent has officially entered the AI race, but where is its positioning, and can it survive the competition?Let's look at $BABA-W(09988.HK) , Alibaba Cloud and AI models are more than three times the size of Tencent's. Alibaba's investment of RMB 380 billion is mainly to expand computing power reserves. Tencent, on the other hand, doesn't need to reserve so much computing power because Tencent Cloud is just average. From this perspective, Tencent is more about indirect and frequent investments."
datetime: "2025-03-19T09:22:48.000Z"
locales:
  - [en](https://longbridge.com/en/topics/28204274.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/28204274.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/28204274.md)
author: "[躺平致富](https://longbridge.com/en/profiles/8547308.md)"
---

# $TENCENT(00700.HK) After carefully reviewing part …


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