Tencent, a leading Chinese tech giant, has reported impressive financial results for the fourth quarter and full year, boosted by its strategic investment in AI.

For the three months ending December 31, Tencent's net profits soared by 90% year-on-year to 51.3 billion yuan ($7.1 billion), while its revenue increased by 11% to 172.4 billion yuan, surpassing analyst expectations.

The company's strong performance was attributed to AI-driven enhancements in its advertising platform, growing video account engagement, and solid results from its gaming division.

For the full year, Tencent's revenue reached 660.3 billion yuan, up 8% from the previous year, with net profits jumping 68% to 194.1 billion yuan.

CEO Pony Ma highlighted the role of AI in driving innovation, noting that Tencent had reorganized its AI teams to focus on fast product development and advanced model research.

The company's stock price has surged to its highest in nearly four years, reflecting strong investor confidence.

The increased AI interest follows the unexpected global success of DeepSeek, a Chinese startup whose chatbot development caught the attention of investors, positioning China as a competitor to Western tech leaders like OpenAI.

Ma expressed Tencent's admiration for DeepSeek and confirmed its active integration of their technology. Tencent has also started testing its own AI model, 'Hunyuan Thinker', which aims to offer more professional and human-like responses.

Despite its financial successes, Tencent faces ongoing challenges, including a sluggish domestic economy and political tensions, particularly with the US.

In January, the US added Tencent to a list of firms linked to China's military, a move the company and the Chinese government have criticized as unjustified.