Tencent to invest $70 billion in ‘new infrastructure’

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

Chinese tech giant Tencent Holdings <0700.HK> will invest 500 billion yuan ($70 billion) over the next five years in technology infrastructure including cloud computing, artificial intelligence and cybersecurity, the company said Tuesday.

The announcement comes after call by Beijing last month for a tech-driven structural upgrade of the world’s second-largest economy through investment in “new infrastructure” and a boom in demand for business software and cloud services.

Other key sectors of the investment include blockchain, servers, big data centres, supercomputer centres, internet of things operating systems, 5G networks and quantum computing, Dowson Tong, senior executive vice president of Tencent, told state media in an interview.

Tencent is best-known for its WeChat messaging app and a range of popular games but is aiming to expand into business services as consumer internet growth slows and companies shift number-crunching from their own computers to the cloud.

Tencent shares were 2.5% higher following the announcement.

Tencent has said while cloud businesses suffered amid the COVID-19 outbreak it expected to see accelerated cloud services and enterprise software adoption from offline industries and public sectors over the longer term.

“Expediting the ‘new infrastructure’ strategy will help further cement virus containment success,” Guangming Daily quoted Tong as saying.

Tencent Cloud had 18% of China’s cloud market in the fourth quarter, trailing Alibaba Group Holding Ltd <BABA.N> which commanded 46.4%, according to research firm Canalys.

Alibaba said last month it would invest 200 billion yuan in its cloud infrastructure over three years.

This article was originally published on finance.yahoo.com/news/.

Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

Who is staying, who has gone?on July 6, 2022 at 11:47 am

After Rishi Sunak and Sajid Javid resign, who else is leaving Boris Johnson's cabinet and in his ministerial team?After Rishi Sunak and Sajid Javid...

China fires missiles near Taiwan after Pelosi visiton August 4, 2022 at 3:43 pm

Taiwan and Japan say Chinese missiles land in their seas with Beijing angered by the visit.This video can not be playedTo play this video...

Rishi Sunak to meet Xi Jinping at G20 summiton November 15, 2022 at 10:30 pm

The prime minister will call for a "frank and constructive relationship" between the UK and China.Image source, ReutersBy Becky MortonBBC political reporterRishi Sunak will...

Montana’s Christian Baker Wants You to Sell… But You Have to Do Something First

Sales is an art, a science… and something most companies need help developing. First off, a company needs something to sell. You’d be surprised how...

Jacinda Ardern: New Zealand PM says no regrets over decision to step downon January 20, 2023 at 4:49 am

New Zealand's leader says she has a "sense of relief" as her party prepares to anoint a successor.Image source, EPABy Shaimaa Khalilin WellingtonJacinda Ardern...
Home of Science
Follow me