Tencent Holdings Ltd. and Alibaba Group Holding Ltd. earnings will be shaped by rising artificial intelligence investment costs and growing competition in China’s AI sector, following DeepSeek’s high-profile V4 model launch.

Tencent’s full-year earnings growth is expected to slow to the low-teen percentage range as AI investments double, according to Bloomberg Intelligence. Alibaba faces pressure from China’s soft consumption outlook, with BI saying its richer valuation relies more on longer-dated, AI-driven monetization than near-term earnings delivery.