Tencent to Invest $70 Billion in 'New Infrastructure'

Tencent is best-known for its WeChat messaging app and a range of popular games but is aiming to expand into business services as consumer internet growth slows and companies shift number-crunching from their own computers to the cloud. Tencent shares were 2.5% higher following the announcement. Tencent has said while cloud businesses suffered amid the COVID-19 outbreak it expected to see accelerated cloud services and enterprise software adoption from offline industries and public sectors over the longer term. "Expediting the 'new infrastructure' strategy will help further cement virus containment success," Guangming Daily quoted Tong as saying. Tencent Cloud had 18% of China's cloud market in the fourth quarter, trailing Alibaba Group Holding Ltd which commanded 46.4%, according to research firm Canalys.