Tencent expands AI computing capacity after Hy3 demand surge
Tencent Holdings Ltd. rapidly expanded its computing capacity after a surge in demand for its newly launched artificial intelligence model, Hy3, temporarily overloaded its systems. The surge followed Tencent’s integration of the official version of the large language model into WorkBuddy, its proprietary intelligent work assistant. Released July 6, Hy3, also known as Hunyuan 3, replaces a preview version and is the first major product milestone since Yao Shunyu took charge of Tencent’s large language model development as chief AI scientist at the company’s CEO and president’s office. The model emphasizes stronger AI-agent capabilities and has achieved a claimed 90% success rate on agent tasks across Tencent platforms including WorkBuddy, desktop-operation agent Marvis and knowledge-base product ima.
Chinese AI developer MiniMax raises HK$16 billion
Chinese large language model developer MiniMax Group Inc. has raised HK$16 billion ($2 billion) through a share placement and a zero-coupon convertible bond sale as the company doubles down on its pursuit of artificial general intelligence. The company said on Friday that it plans to use 80% of the proceeds to expand its AI infrastructure and model research, including deploying new-generation AI accelerators and high-bandwidth networks. The remaining capital will be earmarked for accelerating the global commercialization of its intelligent agent products. The fundraising comes at a time when MiniMax is preparing for a dual listing on Shanghai’s Nasdaq-style STAR Market.
Xiaomi cuts jobs across divisions as earnings come under pressure
Xiaomi Corp. has been cutting jobs across several business units since March, as the Chinese technology company moves to rein in costs after a sharp profit decline, according to several company insiders. The layoffs have affected teams in smartphones, automobiles, internet services and international operations, covering roles in research and development, testing, product management and marketing, the people said. The cost-cutting comes after Xiaomi reported weaker first-quarter results. Revenue fell 10.9% from a year earlier to 99.1 billion yuan ($14.6 billion), while adjusted net profit dropped 43.1% to 6.1 billion yuan. Smartphone and large home-appliance revenue both recorded double-digit declines, weighed down by higher storage costs and rising AI investment.
AI chipmaker Enflame wins approval for $883 million STAR Market IPO
China’s securities regulator has approved Tencent-backed AI chip startup Shanghai Enflame Technology Co. Ltd.’s application for an initial public offering on Shanghai’s STAR Market, where the company plans to raise 6 billion yuan ($883 million). Founded in 2018, Enflame has developed four generations of architecture and five AI chips, releasing its fourth-generation chip and acceleration module in 2025. The company said in its prospectus that it expects to turn profitable in 2026 or 2027, despite accumulated losses of 4.4 billion yuan as of the end of 2025.
