Key Points
- Chinese tech giant Tencent is expanding its cloud computing business into Europe.
- Instead of competing everywhere, Tencent will focus on its strengths in gaming, video streaming, and “super app” technology.
- The move pits Tencent directly against the dominant players in the European market: Amazon, Microsoft, and Google.
- The company will offer AI tools that can work with various AI models, including those from Europe, to provide customers with more choices.
Tencent, the Chinese tech giant behind the hugely popular WeChat app and a global gaming empire, is making a major push into Europe with its cloud computing business. The company plans to leverage its years of experience in China to enter a new market, competing head-to-head with giants like Amazon, Microsoft, and Google.
In a recent interview, Dowson Tong, the CEO of Tencent’s cloud group, said the company won’t try to compete on all fronts. Instead, it will focus on specific areas where it has unique strengths. These include providing the powerful cloud technology needed for smooth video streaming, lag-free online gaming, and building complex “super apps”—single applications that offer multiple services, such as messaging and payments, all in one place.
Tencent has already started working with European companies, like helping French telecom firm Orange with its “Max it” app in Africa.
The company is also betting that European businesses will not want to put all their eggs in one basket. Tong said Tencent is building its services to work well in a “multi-cloud” environment, making it easy for customers to use Tencent’s technology alongside services from other providers.
When it comes to artificial intelligence, Tencent is also taking a flexible approach. Instead of just pushing its own Chinese-built AI model, the company plans to offer tools that can work with various AI models, including those developed in Europe. This enables customers to select the most suitable technology for their specific requirements.
