Introduction: Has Tencent's newly released Hunyuan Hy3 preview language model proven Yao Shunyu's capabilities?

Lishi, Yuanbao/Author  Lishi Business Review/Producer

Since Yao Shunyu, a former star researcher at OpenAI, joined Tencent to lead the development of large language models, his first major achievement has been highly anticipated by the outside world.

Recently, the Hunyuan Hy3 preview language model, developed under Yao Shunyu's leadership, was officially released and open-sourced, making its debut in Tencent's proprietary products such as Yuanbao, ima, WorkBuddy, and CodeBuddy.

How does the Hy3 preview language model perform? Has it improved compared to Tencent's previous large models? To answer these questions, Lishi Business Review conducted multiple inquiries on the Yuanbao App, which utilizes the Hy3 preview language model, focusing on topics related to Tencent. The responses from Yuanbao App were measured—though still lacking some "human touch," they demonstrated strong accuracy, systematic thinking, and logic, with some expressions offering valuable insights. We are sharing these Q&A sessions below, allowing readers to gain a general understanding of the Hy3 preview language model and Tencent's business ecosystem.

Lishi Business Review: Provide an overview of Tencent's business ecosystem.

Yuanbao App: Tencent's business ecosystem is extensive, with the following key segments:

I. Value-Added Services

1. Online Gaming

As the world's largest game publisher, Tencent owns numerous popular mobile games, such as Honor of Kings and Peacekeeper Elite, and continuously releases new titles.

2. Social Networking Services

This includes services like video channel livestreaming and video subscription memberships. For example, Tencent Video offers a wealth of film, television, and variety content to meet users' entertainment needs.

II. Online Advertising

1. Media Advertising

Leveraging Tencent's media platforms, such as Tencent News, it provides advertising services to advertisers.

2. Social and Other Advertising

Based on social platforms like WeChat and QQ, it delivers ads to hundreds of millions of Chinese consumers through precise user targeting technology.

III. Fintech and Enterprise Services

1. Commercial Payments

WeChat Pay is a key part of Tencent's fintech ecosystem, widely used in various online and offline consumption scenarios, facilitating user payments.

2. Fintech

It offers financial services such as wealth management and insurance to meet users' diverse financial needs.

3. Cloud Services

Tencent Cloud provides enterprises with a range of cloud services, including computing, storage, and databases, supporting their digital transformation.

IV. Other Businesses

1. Investment

Tencent is an active strategic investor, holding stakes in leading internet companies such as Pinduoduo, Kuaishou, and Xiaohongshu.

2. Film and Television Production and Distribution

It produces and distributes films and TV programs for third parties, participating in the investment and production of some popular titles.

3. Content Licensing

It licenses its high-quality content to other platforms or enterprises, realizing diverse content value.

4. Merchandise Sales

It engages in some merchandise sales activities related to Tencent's businesses.

Summary: Tencent enriches the lives of internet users through technology, connecting them to diverse digital content—including games, videos, music, and literature—via its social networking and communication platforms, WeChat and QQ. Meanwhile, Tencent offers distinctive products in mobile payments, cybersecurity, cloud services, and artificial intelligence, driving business growth for its partners. It also invests heavily in talent and technological innovation, contributing to the development of the internet industry.

Lishi Business Review: How have Tencent's various businesses performed in the market?

Yuanbao App: According to Tencent Holdings' 2025 earnings report and market data, all of Tencent's business segments maintained robust growth in 2025, with total revenue reaching RMB 751.77 billion. Below is a detailed analysis of each segment's market performance:

1. Value-Added Services (Gaming and Social Networking)

This is Tencent's largest revenue source, generating RMB 369.3 billion in 2025, up 16% year-on-year, accounting for 49.12% of total revenue.

Domestic Market Gaming: Revenue reached RMB 164.2 billion, up 18% year-on-year. Growth was primarily driven by the stable performance of "evergreen" titles like Honor of Kings and Peacekeeper Elite, as well as the strong contribution of the new game Delta Force.

International Market Gaming: Revenue was RMB 77.4 billion, up 33% year-on-year (32% at constant exchange rates). Growth was fueled by increased revenue from Supercell's games and PUBG MOBILE, as well as incremental revenue from Wuthering Waves.

Social Networking: Revenue reached RMB 127.7 billion, up 5% year-on-year, driven by growth in video channel livestreaming revenue, music subscription revenue, and mobile game virtual item sales.

2. Fintech and Enterprise Services (ToB Business)

This segment is Tencent's second-largest revenue pillar, generating RMB 229.4 billion in 2025, up 8% year-on-year, accounting for 30.52% of total revenue.

Fintech: Revenue grew by a high single-digit percentage, driven by increases in wealth management services, consumer lending services, and commercial payment activities.

Enterprise Services: Revenue grew nearly 20% year-on-year, reaching a new high. Growth was primarily driven by demand for cloud services (including AI-related services) and increased technical service fees from rising transaction volumes on WeChat Stores. Additionally, Tencent Cloud achieved full-year profitability in 2025.

3. Marketing Services (Online Advertising)

This segment performed impressively, generating RMB 145 billion in 2025, up 19% year-on-year, accounting for 19.28% of total revenue.

Growth Drivers: Mainly driven by dual increases in ad pricing and ad impressions. AI technology enhanced ad targeting capabilities, the share of closed-loop ads (such as Mini Programs and WeChat Stores) increased, and user engagement with video channels and WeChat Search grew, collectively driving ad business growth.

Technological Empowerment: Tencent upgraded its advertising foundation model and launched the intelligent ad delivery product matrix "Tencent Advertising AIM+", achieving full-process automation from creative production to ad delivery.

4. Other Businesses

Other businesses generated RMB 8.077 billion in revenue, accounting for approximately 1.07%, mainly including investment, film and television production and distribution, and content licensing.

Profitability: In 2025, Tencent's overall gross profit reached RMB 422.6 billion, up 21% year-on-year, with the gross margin rising to 56%. This was mainly attributed to increased contributions from high-margin businesses (such as self-developed games and video channel ads) and improved cost efficiency in cloud services and fintech.

Stock Price and Institutional Expectations: As of April 2026, Tencent Holdings' (00700.HK) stock price fluctuated in the HKD 490-500 range. Institutions generally remain bullish on its prospects, with about 95% giving "Buy" or "Overweight" ratings, forecasting continued double-digit revenue growth in the first quarter of 2026.

Lishi Business Review: Why has Tencent been able to achieve success across so many businesses and products?

Yuanbao App: Tencent's ability to lead in seemingly diverse fields such as social networking, gaming, fintech, and cloud services stems from its construction of a compound growth flywheel combining "traffic ecosystem + organizational mechanisms + technological foundation." Simply put, it is not just building products but operating a vast digital ecosystem.

Below are the four key pillars supporting its diversified success:

I. Core Traffic and Ecosystem Synergy (Foundation)

Tencent owns WeChat and QQ, two "national-level" platforms that serve not only as social tools but also as super incubators for all its businesses.

Connecting Everything: WeChat has built a system that "connects everything" through features like Official Accounts, Mini Programs, WeChat Pay, and video channels. New businesses (such as video channels and Mini Program e-commerce) can seamlessly integrate into this ecosystem, enjoying a massive user base and significantly reducing customer acquisition costs.

Ecosystem Closed Loop: In the content space, Tencent has integrated IP chains across China Literature (literature), Tencent Video (film and television), and Tencent Games (interactive). A single novel IP can be adapted into anime, TV dramas, and games, achieving a synergistic "multi-use" effect.

II. Unique Organizational and Talent Mechanisms (Engine)

Tencent has a unique "soil" mechanism internally that continuously produces hit products.

Internal Competition Mechanism: This is Tencent's killer innovation strategy. When facing major new opportunities, Tencent allows multiple teams to develop similar products simultaneously (the most classic case being WeChat's victory over other mobile messaging products developed at the same time). This mechanism ensures that the best product emerges, avoiding decision-making deadlocks in large companies.

Entrepreneurial Spirit: Tencent retains top talent by allowing employees with an entrepreneurial spirit to start businesses internally. Through full authorization and profit-sharing, employees feel they are working for their own ventures, inspiring the creation of hit products like WeChat and Honor of Kings.

III. Capital Connections and Open Strategy (External Brain)

Tencent recognizes that it cannot excel in all niche areas alone and has shifted its strategy from "doing everything" to "building an open ecosystem.

"Half a Life" Theory: Pony Ma proposed giving "half a life" to partners. Through investments (such as in JD.com, Meituan, and Pinduoduo) rather than full acquisitions, Tencent has built a vast "Tencent ecosystem" of allies. This not only brings substantial financial returns but also consolidates its indirect influence in e-commerce, local services, and other fields through payment and traffic empowerment.

IV. Technological Middle Platform and Adaptability (Fuel)

Technological Accumulation: Through technical departments like TEG (Technology Engineering Group), Tencent has established a powerful technological middle platform (such as cloud services, AI large models, and security capabilities). These foundational technologies can be reused across gaming, fintech, advertising, and other business lines, improving overall efficiency.

Strategic Iteration: Tencent demonstrates strong self-evolution capabilities. From PC internet to mobile internet (WeChat) and then to industrial internet (the "930" transformation), it has always acute ly captured technological shifts and laid out strategies in advance (such as going "All in AI"), avoiding being left behind by the times.

In summary, Tencent's success is not the victory of a single product but the result of the synergy between "social traffic x capital ecosystem x competition mechanisms."

Lishi Business Review: What management and cultural systems enable Tencent to develop these capabilities?

Yuanbao App: Tencent's ability to excel across so many businesses stems from its construction of a management and cultural system that is "highly decentralized yet deeply shared." Simply put, Tencent operates like a collection of "internal startups" that share the same "infrastructure" (water, electricity, and gas), ensuring both flexibility and the resource advantages of a large company.

This system primarily consists of the following four core pillars:

I. Organizational Structure: Market-Oriented Ecosystem Organization

Tencent adopts a "federal" structure, resembling an alliance of numerous small teams:

Highly Autonomous Business Groups (BGs): Each business unit (such as WeChat, Gaming, and Content) has independent budgets, technologies, and decision-making authority. The group acts more as a coordinator than a commander, allowing businesses to respond quickly to the market like startups.

Shared Technological Middle Platform: Despite decentralized businesses, foundational technologies (such as TEG) are unified. Business teams do not need to reinvent the wheel and can reuse company-wide traffic platforms, technical platforms, and functional platforms, significantly reducing innovation costs.

Dynamic Adjustment Mechanism: Tencent has undergone several major organizational restructurings in its history (such as the "930" transformation in 2018), flexibly reorganizing business groups based on market conditions (such as the shift from consumer internet to industrial internet) to maintain organizational adaptability.

II. Innovation Mechanism: Internal Competition and Trial-and-Error

Tencent's famous "hit" products often emerge from internal competition rather than top-down decisions:

Internal Competition: Tencent encourages controlled redundancy and internal competition. The most classic case is the birth of WeChat—three teams were simultaneously developing mobile social products, with Zhang Xiaolong's Guangzhou team ultimately winning. Although this mechanism may seem resource-intensive, it significantly reduces the risk of missing major innovations.

Tolerance for Failure: The company culture encourages trial-and-error, and employees are not punished for a single poor performance. This sense of security empowers employees to take on challenging innovation projects.

III. Talent Management: Talent Mobility and Empowerment

In talent management, Tencent emphasizes "caring for employee growth" and stimulates self-motivation through mechanism design:

Internal Talent Mobility Program: Employees can freely transfer internally to find A more suitable battlefield (a more suitable battlefield). This not only keeps talent resources flowing but also helps employees "get back on track" after setbacks, enhancing organizational resilience.

Empowerment Over Coercion: Management systems are rarely implemented with a "one-size-fits-all" approach. Instead, they follow the "Nudge" theory, guiding employees to make correct decisions by optimizing the environment while respecting human nature and business complexity.

Flat Management: Management layers are kept within four levels to maintain efficient and transparent communication.

IV. Cultural Core: User-Centricity and Integrity

Culturally, Tencent has a distinct engineer's mindset and values bottom line (bottom lines):

User Value as the Guiding Principle: This is the core of Tencent's business philosophy. Whether it's the product manager's "10/100/1000 rule" (conducting 10 user surveys, following 100 blogs, and collecting 1,000 feedbacks monthly) or high-level decisions, the emphasis is on starting from user needs, even willing to sacrifice short-term commercial interests to maintain user experience.

Integrity as the Bottom Line: "Integrity" is a non-negotiable value. Zero tolerance is applied to corruption and fraud, but high tolerance is maintained for non-principled matters (such as employee personality and dress code), creating a "formally loose but spiritually cohesive" atmosphere that protects creativity.

It is this combination of "front-end competition + back-end middle platform + cultural support" that enables Tencent to innovate with the agility of a small company while maintaining the solid technological foundation of a large company.

Lishi Business Review: How is Tencent's management and cultural system related to its founding team?

Yuanbao App: Tencent's unique management and cultural system is deeply intertwined with and heavily influenced by its founding team. In essence, Tencent's "DNA" was shaped by its founders.

This is mainly reflected in the following aspects:

1. The Origin of the "Product Manager" Spirit

Pony Ma himself is an extremely outstanding "Chief Experience Officer" and "Super Product Manager." His pursuit of perfection (relentless pursuit) of product details (such as personally replying to user emails and testing products late at night in the early days) set a benchmark for the entire company to prioritize "user value above all else." This top-down reverence for product experience directly gave rise to specific cultural norms like the "10/100/1000 rule."

2. A "Gentle yet Firm" Pragmatic Style

The founding team (especially Pony Ma) demonstrated a pragmatic, low-key, and unassuming style that profoundly influenced the company's decision-making model. They prefer a "small steps, fast iterations, trial-and-error" approach over aggressive gambles. This style nurtured the "internal competition" mechanism—allowing multi-route explorations within controllable limits and letting the market choose the optimal solution rather than having top-level mandates.

3. Technical Background and Engineer Culture

The founding team of Tencent mostly comes from technical backgrounds, which has laid a strong technical foundation for the company. They deeply understand the importance of a technical platform for business scalability, and therefore strongly support the construction of TEG (Technology Engineering Group) to ensure the accumulation and sharing of technical capabilities. At the same time, their technical background also makes them more inclined to make decisions based on data rather than relying solely on intuition.

4. Evolution of the “Family Culture” and Talent Philosophy

In its early days, Tencent's founding team emphasized a “family culture,” fostering a warm and supportive atmosphere. As the company grew, this culture evolved into a more modern approach of “caring for employee growth.” The founding team's respect and inclusiveness towards talent (such as allowing internal mobility and tolerating failure) enabled the company to attract and retain a large number of top talents, providing fertile ground for “internal entrepreneurship.”

5. Open Mindset of “Half a Life”

Founders like Pony Ma realized early on that Tencent could not dominate all fields. This clear-headed recognition led to the strategy of “connecting everything” and an open ecosystem where “half a life” is entrusted to partners. This strategic focus allowed Tencent to concentrate on its core social platform while building a vast external ecosystem through capital connections.

In summary: Tencent's founding team is not only the creator of the company but also the “chief architect” of its management philosophy and cultural values. They integrated their own traits (pragmatism, technical sensitivity, user orientation, and an open mindset) into the company's fabric and solidified them through institutional design (such as internal competition, platform strategy, and internal mobility), enabling the system to operate independently of individuals and support Tencent's vast business landscape.

Lishi Business Review: How do you view Tencent's future development?

Yuanbao App: Based on Tencent's performance in 2025 and its latest strategic direction, its future development can be defined as a transformation from an internet giant relying on “traffic dividends” to a digital infrastructure engine driven by “AI technology.”

Here is a detailed analysis based on data and strategy:

1. Core Driver: AI Reshaping the Entire Business Landscape

Tencent's future growth will no longer rely solely on user base expansion but on enhancing the “value content” of its existing businesses through AI technology.

AI Industrialization: Tencent is leveraging AI to improve game development efficiency (e.g., intelligent NPCs) and advertising precision. In Q4 2025, advertising revenue grew by 17% year-on-year, largely due to AI-driven ad targeting capabilities.

Intelligent Agent Ecosystem: This is Tencent's most promising area for the future. The company plans to build “AI agents” based on the WeChat ecosystem, intelligently integrating mini-programs, social features, and payment capabilities. Pony Ma mentioned in internal speeches that future AI applications will possess “human-like” qualities and memory capabilities, fundamentally changing how users interact with WeChat.

R&D Investment: In 2025, Tencent's R&D investment reached RMB 85.75 billion, with capital expenditures of RMB 79.2 billion, focusing on GPUs and AI infrastructure to pave the way for the Hunyuan large model and future applications.

2. Business Growth Analysis

Tencent's three main businesses all show clear growth paths:

Gaming (Stable Foundation): The domestic market remains stable, relying on “evergreen” titles like Honor of Kings and Peacekeeper Elite. The international market has become a new growth engine, with international gaming revenue increasing by 33% year-on-year (at constant exchange rates) in 2025, driven by strong performances from PUBG MOBILE and Supercell's games.

ToB (Tencent Cloud's Profitability Turnaround): This marks a significant turning point. Tencent Cloud achieved full-year scaling (scalable) profitability in 2025 (adjusted operating profit of approximately RMB 5 billion), ending its prolonged losses. This was driven by high-value demand for AI computing power (IaaS) and intelligent solutions (PaaS/SaaS).

Advertising (Video Account Monetization): Video Accounts are accelerating monetization, optimizing recommendation algorithms and ad load rates through AI, becoming the primary driver of advertising revenue growth.

3. Financial Health and Shareholder Returns

Tencent has extremely strong cash flow generation capabilities, providing a safety net for its “aggressive” investments in AI.

Performance Data: In 2025, total revenue reached RMB 751.77 billion (up 14% year-on-year), with net profit attributable to shareholders of RMB 224.84 billion (up 15.85% year-on-year). The gross sales margin improved to 56.21%, indicating strong profitability.

Shareholder Returns: Tencent plans to distribute a dividend of HKD 5.30 per share, totaling approximately HKD 48 billion, and continues to conduct share buybacks, demonstrating management's confidence in future cash flows.

4. Potential Risks and Challenges

Short-term Profit Margin Pressure: To secure a leading position in AI, Tencent's AI-related investments are expected to double in 2026 (exceeding RMB 36 billion), which may temporarily suppress Non-IFRS operating profit margins.

Macro Environment: The fintech business (payments, credit) is highly correlated with macroeconomic activity. If consumer recovery falls short of expectations, growth in this segment may be limited.

5. Institutional Views

The market remains optimistic about Tencent's future. As of April 2026, approximately 95% of covering institutions have given “buy” or “overweight” ratings, with an average Hong Kong stock target price of around HKD 733.25, considering Tencent the “most certain core asset in China's digital economy.”

Summary: Tencent's future lies in “AI in All.” It is no longer just a social or gaming company but aims to transform its vast social, content, and transactional data into intelligent services through AI technology, building an ecosystem at the level of an “intelligent operating system.”

Lishi Business Review: How does the latest large model introduced by Yao Shunyu after joining Tencent differ from previous versions?

Yuanbao App: After Yao Shunyu joined Tencent, the Hunyuan large model team underwent a “complete rebuild” of its underlying logic and R&D system, introducing the new Hunyuan Hy3 preview. Compared to previous versions, this update is not just a technical parameter upgrade but a fundamental shift in R&D philosophy.

1. R&D Philosophy: From “Parameter Competition” to “Practicality Focus”

Under Yao Shunyu's leadership, the team established three core principles that directly changed the model's development direction:

Systematized Capabilities: Rejecting “specialization,” the team no longer pursues benchmark scores alone but emphasizes deep collaboration among reasoning, coding, tool invocation, and other capabilities to meet complex real-world demands.

Authentic Evaluation: Actively moving away from publicly available datasets prone to “benchmark gaming,” the team focuses on evaluating the model's “real-world effectiveness” through self-built test sets and manual assessments.

Cost-Effectiveness: By deeply integrating the model architecture with the inference framework, task costs are significantly reduced, making the model more commercially viable.

2. Technical Architecture: Fusion of Fast and Slow Thinking

This is the most prominent technical feature of Hy3 preview. The previous Hunyuan 2.0 used two separate versions—Think (deep reasoning) and Instruct (quick response)—requiring manual switching by users.

Single Model Fusion: Hy3 preview achieves a fusion of fast and slow thinking. The model automatically adjusts its reasoning depth based on task complexity, providing efficient and high-quality responses without user intervention.

Parameter Optimization: The total parameter count has been reduced from 406B to 295B, with active parameters down to 21B. This “streamlining” strategy effectively avoids the pitfalls of mere parameter stacking, improving inference efficiency.

3. Core Capabilities: Focus on Agents and Code

The new model prioritizes agent capabilities as a core breakthrough, particularly strengthening performance in complex task decomposition, tool invocation, and long-context understanding.

Performance Improvements: In benchmarks like SWE-Bench Verified (code generation), Hy3 preview performs on par with GLM-5 and Kimi-K2.5, achieving domestic leading scores in hardcore reasoning tasks like the math Ph.D. qualifying exam.

Real-World Adoption: The model has been integrated into dozens of Tencent products, including Tencent Yuanbao, Tencent Docs, and QQ, demonstrating more natural and immersive interactions in scenarios like AI NPCs in Peacekeeper Elite.

4. Organization and Infrastructure: Integrated R&D and Operations

Yao Shunyu broke down the silos between infrastructure and algorithm R&D, merging the AI Infra and large language model teams into one.

This OpenAI-style “research-engineering integration” approach enabled the team to efficiently launch this flagship model just two months after rebuilding the pre-training and reinforcement learning infrastructure.

Lishi Business Review: Compared to Alibaba's QianWen and ByteDance's Doubao large models released around the same time, is Tencent's Hunyuan leading or lagging?

Yuanbao App: Tencent's Hunyuan large model is currently in a catch-up phase, gradually approaching the top tier. Compared to Alibaba's Tongyi QianWen and ByteDance's Doubao, it does not lead in every benchmark but stands out for its “practicality-oriented, scenario-differentiated” approach.

Core Capability Comparison:

Math and Reasoning: Hunyuan Hy3 preview performs exceptionally well, scoring the highest domestically (88.4 points) in the Tsinghua University School of Mathematics Ph.D. qualifying exam and 84.3% on IMO-AnswerBench, second only to DeepSeek and slightly ahead of Tongyi QianWen.

Code and Agents: Compared to Doubao Seed 2.0 Pro and Tongyi QianWen Qwen3.6 Max, Hunyuan still has gaps in code generation and complex agent tasks but surpasses Kimi K2.5 in real-world agent deployment capabilities.

Multimodality and Ecosystem: ByteDance's Doubao leads in multimodality (image/video) and content creation; Alibaba's Tongyi QianWen excels in long-text processing and office scenarios; Tencent's Hunyuan is deeply integrated with the WeChat/QQ ecosystem, offering the most convenient social and office experiences.

Overall Assessment: Hunyuan does not pursue all-around first place but focuses on “comprehensive practicality” and cost-effectiveness, enhancing synergy with Tencent products like Tencent Docs and Yuanbao. While its peak performance slightly lags behind top versions of Doubao and QianWen, it firmly ranks among China's first tier, fully supporting its core business needs.

Lishi Business Review: Do you think Yao Shunyu has proven his capabilities through Hunyuan Hy3 preview?

Yuanbao App: Undoubtedly, Yao Shunyu has strongly demonstrated his capabilities with Hunyuan Hy3 preview. This is not just a model version update but the first hardcore deliverable of his “Hunyuan Rebuild Plan” at Tencent.

His performance is reflected in breakthroughs across several key dimensions:

1. Closing the Gap and Rejoining the Race

The most visible achievement of Hy3 preview is significantly narrowing the gap between Tencent's Hunyuan and domestic top-tier large models (e.g., Kimi, GLM). The new model achieves marked improvements in core metrics like complex reasoning (domestic top score in the Tsinghua math Ph.D. exam), code generation (74.4% on SWE-Bench Verified), and agent capabilities, proving his ability to lead the team in addressing past limitations of Hunyuan.

2. Correcting the R&D Route: From “Benchmark Chasing” to “Practicality”

Yao Shunyu showcased his strategic vision as Chief Scientist. He sharply (keenly) identified past issues where Hunyuan over-pursued benchmark scores, leading to data pollution and weak real-world performance, and spearheaded a fundamental shift in R&D logic:

Rejecting Specialization: No longer pursuing parameter scale and public benchmark rankings alone, the team emphasizes systematized collaboration among reasoning, coding, long-text, and other capabilities.

Authentic Evaluation: Moving away from easily “gamed” datasets, the team built over 50 self-developed evaluation systems to focus on real-world effectiveness.

3. Real-World Impact and Efficiency Optimization

Another criterion for proving capability is translating technology into productivity. Hy3 preview has rapidly deployed across over ten core Tencent products, including Yuanbao, Tencent Docs, and CodeBuddy, while improving inference efficiency by 40% and significantly reducing API call costs (as low as RMB 1.2 per million tokens for input). This pursuit of cost-effectiveness reflects his grasp of commercial viability.

4. Organizational Restructuring Power

Beyond technology, he demonstrated leadership in organizational management. Upon taking office, he swiftly restructured the AI Infra team, integrating pre-training, fine-tuning, and inference into a complete chain and breaking down departmental silos. This “research-engineering integration” approach enabled Hunyuan's “rebuild” in a short time (less than three months from training to launch).

In summary, while Hy3 preview still lags behind global top closed-source models (e.g., Claude or GPT) in some extreme tasks, Yao Shunyu has proven his comprehensive ability (comprehensive capabilities) in identifying pain points, correcting direction, executing efficiently, and delivering high-value outcomes.

Lishi Business Review: How do you predict Tencent's evolution in the large model field next?

Yuanbao App: Tencent's evolution in the large model field can be summarized as “technology returning to practicality and ecosystem-wide agentization.” Based on the latest developments (e.g., Hy3 preview release) and financial data as of April 2026, Tencent's path forward is becoming very clear:

1. Model Layer: From “Benchmark Chasing” to “Real-World Combat”

Under Yao Shunyu's leadership, Tencent's Hunyuan large model will completely abandon mere parameter competition and shift towards “fusion of fast and slow thinking” and “high cost-effectiveness.”

Systematized Capabilities: Instead of pursuing extremes in single metrics, the model emphasizes deep collaboration among reasoning, coding, long-text, and other capabilities. Hy3 preview has already shown significant improvements in complex logical reasoning and agent tasks. Future models will resemble all-around “digital employees” rather than mere chatbots.

Rejecting Vanity Metrics: Tencent will focus more on the model's performance in real business scenarios (e.g., Tencent Docs, Yuanbao) rather than public benchmark rankings. This “pragmatism” will help Hunyuan establish differentiated advantages in specific productivity scenarios (e.g., code generation, data analysis).

2. Application Layer: “Agentization” of Super Entrances

Tencent's greatest moat—WeChat and QQ—will evolve from “connectors” to “intelligent hubs.”

Decentralized Agent Ecosystem: In the future, opening WeChat will not just be for chatting but for calling various Mini-program Agents via “Yuanbao” or direct dialogue to complete complex tasks like ordering food, booking tickets, and managing schedules. Tencent aims to enable every mini-program with AI autonomous execution capabilities.

Full-Scenario Penetration: Beyond social, Tencent Cloud will launch an agent development platform covering the entire link (chain) (e.g., WorkBuddy, CodeBuddy), packaging large model capabilities into “building blocks” that enterprises can easily deploy, accelerating adoption in B-end scenarios like finance, healthcare, and mobility (e.g., intelligent cockpits).",