In today's fast-paced technological landscape, every breakthrough and innovation can ripple through markets and industries in significant waysThe announcement on February 17 that WeChat was officially integrating the DeepSeek model was akin to a seismic shift in the capital landscape, sending shockwaves and stirring excitement among investors and tech enthusiasts alikeOn that day, Tencent Holdings experienced a remarkable surge in stock prices, with an incredible market cap growth of approximately HKD 320 billion (around CNY 298 billion). This pivotal moment not only put Tencent in the spotlight but also thrust the DeepSeek AI model into the broader public consciousnessLet us delve a bit deeper into the details surrounding this groundbreaking event.

On February 16, Tencent announced that its WeChat "Search" feature would be leveraging the Xuanyuan model to enhance its AI search capabilities, while concurrently undergoing a gray test to integrate the DeepSeek modelFor users included in this gray test rollout, it meant the ability to harness AI search functionality directly within WeChat by selecting the "AI search" option followed by the "Deep Thinking" modeThis innovative function would allow users to access more comprehensive answers derived from the DeepSeek-R1 model’s extended reasoning abilities.

Tencent made it clear that the DeepSeek-R1 model being tested was a fully functional version, available to users free of charge

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Users began reporting that search responses not only delivered greater depth and breadth but also referenced a variety of information sources, including official public account articles and web pagesFurthermore, the interface allows users to continue querying the AI, fostering a dynamic and engaging interaction.

This step undoubtedly transformed the user experience within WeChat's existing search functionsPreviously, users relied predominantly on conventional search engines to find informationHowever, with the introduction of WeChat's AI search features, personalized and precise answers became more accessibleThis advancement is expected to catalyze increased user engagement and retention within the WeChat ecosystem.

On February 17, the market reacted explosively when Tencent and its related concept stocks began to soarReports indicated that Tencent’s stock price rose to HKD 512, achieving its most substantial performance since October 21, 2021. By around 10 AM, shares had increased by over 7.5%, resulting in a market cap hike of roughly HKD 320 billion.

Furthermore, several other tech firms associated with Tencent also witnessed significant share price increasesFor instance, Weimob Group surged by 15%, Tencent Literature's stock jumped 11.97%, and Youzan's value rose by 10.16%. This cascading effect drew widespread attention from investors, reinforcing their interest in Tencent's future trajectory.

Responses from the online community included exclamations of admiration and surprise, with comments like, "What a massive achievement!" and "DeepSeek truly seems to be the golden ticket!" The market's enthusiastic reception underscored the significant advantages brought about by WeChat's integration of DeepSeek, enhancing Tencent's competitive edge in the AI sector and infusing the company with renewed momentum.

According to Tencent's fiscal report for the third quarter of 2024, WeChat and its WeChat combined active accounts reached an astonishing 1.382 billion

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Such an extensive user base provides an ample market for the DeepSeek integration.

Moreover, reported data from WeChat's public lectures indicated that by 2022, the monthly active users of the "Search" function had climbed to 800 million, with the search frequency rising by 54% year-over-yearThis indicates that as the WeChat "Search" feature continues to evolve and improve, more and more users are turning to it for their information needs.

The integration of DeepSeek will undoubtedly elevate WeChat's search functionality by providing intelligent and accurate responsesBy incorporating a wide range of digital content including public account articles, video accounts, mini-program services, social circle posts, and web pages, DeepSeek promises a richer and more informative user experience.

Additionally, the vast user base will fuel a rapid increase in API calls, potentially triggering further growth in the inference marketFor Tencent, this represents a considerable commercial opportunity.

It's noteworthy that beyond the WeChat "Search" function, several of Tencent's products are exploring integration opportunities with DeepSeekFor example, the QQ browser has officially integrated the fully functional DeepSeek-R1 model, allowing features like deep contemplation, internet search, multi-turn dialogue, and historical record retrieval

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Users can access the dedicated DeepSeek model on both mobile and desktop platforms by initiating searches with Sogou or full network search options.

Furthermore, the AI document assistant in Tencent Docs has also adopted the full version of the DeepSeek-R1 modelBy opting for the DeepSeek-R1 model within the AI document assistant, users can utilize this functionality across various platforms - mobile, web, and desktop.

Earlier, on February 13, Tencent's AI assistant "Tencent Yuanbao" saw a significant upgrade, now supporting both the Xuanyuan and DeepSeek modelsSuch initiatives will not only enhance Tencent's competitive positioning in the AI realm but also accelerate the company's ecological layout.

Intriguingly, shortly after WeChat’s DeepSeek integration announcement, Baidu disclosed its plan to fully incorporate the latest deep search functionalities of both DeepSeek and Wenxin models into their search servicesThe Wenxin intelligent platform pledged to create and optimize intelligent agents for extensive model capabilities for developers, further integrating DeepSeek.

According to various media reports, since February, notable platforms such as Huawei Cloud, Alibaba Cloud, 360 Digital Security, and Volcano Engine have announced the launch of the DeepSeek model

This shift signals a significant evolution in the AI competition landscape as it migrates towards "model iteration + ecological expansion." Major companies like Baidu, Alibaba, and Huawei are actively integrating DeepSeek, marking a transition from individual model competition to collaborative ecosystem development.

For Tencent, this new strategy showcases dual advantagesFirstly, it allows the company to rapidly enhance its model capabilities through external collaborationSecondly, leveraging its landscape of services, such as WeChat, gaming, and finance, allows Tencent to build distinctive landing advantagesThis dynamic positions Tencent favorably in the AI competitive arena and lays a solid foundation for its future growth.

Throughout the integration of DeepSeek within WeChat, data security and the safeguarding of user privacy emerged as areas of considerable public concernTencent addressed these worries, stating that the AI search will primarily utilize quality content from WeChat’s ecosystem and reputable online sources without compromising user data or related privacy.

This clarification undoubtedly provides users with confidenceAs we enjoy the convenience and efficiency afforded by AI search, we can rest easy knowing that our personal information and privacy remain protectedTencent’s rigorous approach to data security ensures that we can comfortably utilize this new feature.

WeChat's adoption of DeepSeek undoubtedly marks a significant milestone in Tencent's foray into the AI domain

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