- China-based Tencent Holding (OTCMKTS:TCEHY) announced it is investing 500 billion yuan (about $70 billion) in its technology infrastructure over the next 5 years
China-based Tencent Holding (OTCMKTS:TCEHY) announced it is investing 500 billion yuan (about $70 billion) in its technology infrastructure over the next 5 years. This investment will be used on artificial intelligence, cybersecurity, and cloud computing along with blockchain, Internet of Things, quantum computing, and 5G networks. Tencent will also build out large data centers that have more than one million servers each.
To raise the capital, Tencent is going issue up to $20 billion of new new bonds to investtors. And $12 billion of bonds area already outstanding. This investment will help Tencent become more competitive against rivals like Baidu and Alibaba.
This investment will also support “new infrastructure” in China, which is a term being used by the country that encompasses new areas of technology like AI, 5G, and electric car infrastructure.
Tencent is not the only major Chinese tech company to be planning a major investment in new infrastructure. Alibaba said recently that it is going to invest 200 billion yuan over 3 years for its cloud computing operations.
