Integration at the Speed of Light: Tencent's WeChat Embeds DeepSeek
DeepSeek was first integrated into Yuanbao, then directly into WeChat, reshaping the AI race in China
It seems so hard to keep up with the happenings of the AI world these days, especially with what’s happening with China’s AI industry. When DeepSeek R1 was released, I wrote a piece predicting that China's AI applications would truly take off by 2025, but I didn't realize it would be so fast.
Just last Thursday, Tencent's AI app, Yuanbao, announced its integration of DeepSeek's model, accelerating the domestic race to mass AI adoption. I thought I was fast enough to write an article on the importance of integrating DeepSeek into Yuanbao only two days after its announcement. I even predicted that WeChat might integrate DeepSeek directly. But kudos and jokes were on me, as I woke up to the news that broke the Chinese internet. Kudos, because I called it. Jokes, because it’s a lovely Sunday afternoon, and I’m now chowing down a chicken bahn mi while frantically trying to capture this wild news: TENCENT JUST INTEGRATED DEEPSEEK DIRECTLY INTO ITS WECHAT APP.
To my own credit, I did call it the "most likely outcome" at the end of the article given Tencent's departmentalism culture.
Basically, while I was sleeping and my U.S. readers were trying to digest the Yuanbao article, WeChat began grey-scale testing of direct DeepSeek integration overnight.
Tencent's Grey-Scale Testing of DeepSeek in WeChat
Said in the most cliche way but no other way possible: Tencent’s decision to integrate DeepSeek’s R1 model directly into WeChat has sent shockwaves through China’s tech industry.
The grey-scale testing phase — where AI Search within WeChat is tested with a limited group of users — has already revealed some transformative capabilities. Users can now use DeepSeek R1 to perform real-time searches across WeChat’s vast ecosystem, including Official Accounts and user-generated content, both of which are walled gardens within the Tencent ecosystem. AI Search also enables intelligent summarization of articles, personalized recommendations, and enhanced search functionalities.
WeChat Grey-Scale Testing - Left: “AI Search” is integrated into the search bar on top; Right: within “AI Search,” can toggle between “fast answer” and “deep thinking” models (which is based on DeepSeek R1); Photo credit Xiaohongshu
1.3 billion monthly active users
Let that number sink in. With over 1.3 billion monthly active users globally in 2024 and more than 840 million users in China alone, WeChat is by far one of the most widely used apps in the world ever. By embedding DeepSeek directly into its interface, WeChat could enable hundreds of millions of users to access advanced AI capabilities almost instantly (let’s wait and see). Unlike what ByteDance had to do with Doubao, there is no need to market this app. Pretty much everyone has WeChat, even my 93-year-old grandma, but no kidding, everyone is on this app already.
This scale of deployment is unprecedented; within days of a full rollout, DeepSeek could become an integral part of daily life for a significant portion of China's population. Such rapid adoption would dwarf the reach of standalone AI apps, even like ChatGPT (and, unfortunately for Tencent’s Yuanbao team, no one will remember them again).
By embedding advanced AI features directly into WeChat, Tencent is positioning the app as a potential AI super-app. WeChat’s unique role as a combination of a social media platform, a mini-program hub, and a professional network makes it an ideal candidate for such an integration. This move enhances user experience and sets the stage for Tencent to dominate the consumer-facing AI space in China.
The GPU Question: Can Tencent Afford This?
The integration of DeepSeek into WeChat comes with significant computational demands. According to estimates from 共识粉碎机 (Consensus Crusher), an excellent tech investing content creator in China, Tencent has recently ordered 100k to 200k H20 GPUs (export restrictions complaint) to support this initiative. Based on Consensus Crusher’s estimate, each H20 GPU can handle up to 30 concurrent users running DeepSeek models.
This means 100k to 200k H20 will enable Tencent to support 3 to 6 million simultaneous/concurrent users. Note that since not all DAUs will use the AI functions simultaneously (the current ChatGPT DAU is 20x concurrent users), 3 to 6 million concurrent users will mean 60 to 120 million DAUs, which should be enough for WeChat’s initial AI user base.
Financially, according to Consensus Crusher, the cost of these GPUs is estimated to be $2 billion upfront, with an annual depreciation cost of $400 million (assuming depreciation over five years, similar to Amazon’s depreciation policy). The $400 million annual cost is less than 2% of Tencent’s net profit last year. Deepseek’s efficient model has made costs low enough for tech giants like Tencent to experiment with new AI features with a massive user base. Thanks to DeepSeek, Tencent has found a cost-effective way to scale its AI ambitions without straining its financial resources.
What Comes Next?
The integration of DeepSeek into WeChat is truly a strategic move that could reshape the AI landscape in China and beyond. Here’s what I think the future could hold:
Future for Tencent
WeChat as an AI Super-App: With DeepSeek embedded directly into its ecosystem, WeChat is poised to become an all-in-one platform for communication, content discovery, and productivity tools. Potential features include personal knowledge bases, AI-powered group management in WeChat Work, and even AI agents for summarizing subscribed content or crafting personalized greetings based on chat history. These advancements could redefine how users interact with the app, making it indispensable in both personal and professional contexts.
Expansion Beyond Messaging: According to Consensus Crusher notes, WeChat’s vision likely extends beyond efficiency tools to building ecosystems that enable everyone to provide creative services. This suggests that Tencent could leverage DeepSeek to introduce tools for content creation, marketplace functionalities, or even browser-based AI agents. The seamless integration of these capabilities would further solidify WeChat’s dominance as a super-app.
Potential Impact on Competitors
Tencent’s bold move will undoubtedly put pressure on domestic rivals like ByteDance and Alibaba to respond swiftly and make a move. I have some feelings that…
ByteDance: To remain competitive, ByteDance may integrate DeepSeek models into its Doubao app. While Doubao currently relies on ByteDance’s proprietary LLM, DeepSeek's growing capabilities might force ByteDance to adopt a more flexible, multi-model strategy.
Alibaba: Alibaba could expand its Qwen ecosystem by embedding similar AI functionalities into Taobao or Alipay. This would align with its focus on e-commerce and financial services, potentially creating an AI-enhanced shopping or payment experience. BUT, this wouldn't be the most intuitive AI chatbot use case for what we know now.
Broader China AI Implications
Accelerated AI Adoption: The success of this integration could serve as a blueprint for other industries in China to adopt AI at scale. From e-commerce platforms to education providers, the ripple effects of Tencent’s move could inspire widespread innovation.
Potential Effects on Hardware and Infrastructure: Tencent's deployment of 100k–200k H20 GPUs is already boosting demand for semiconductors and cloud infrastructure in China. This surge in demand will likely accelerate advancements in domestic semiconductor manufacturing and cloud services. We’ve seen Chinese data center operators like 21Vianet and GDS enjoy stock price rises of 143% and 65% year-to-date, respectively.
AI Ecosystem Maturity: Tencent’s use of DeepSeek within WeChat could catalyze the development of more user-friendly AI applications across China. By embedding cutting-edge models into everyday tools, Tencent sets a precedent for how AI can seamlessly integrate into daily life.
Conclusion: The Race Is Just Beginning
Not to sound repetitive, but Tencent’s integration of DeepSeek into WeChat marks a turning point in the evolution of consumer-facing AI applications in China. By leveraging its massive user base and unique ecosystem advantages, Tencent has positioned itself as a leader in the Chinese AI race.
However, this isn’t like the finale. In fact, we’re probably only in Season 1, Episode 2 of this whole showdown. The competitive landscape remains dynamic, with Alibaba and ByteDance likely to respond with their own moves. Will ByteDance double down on Doubao’s proprietary model or pivot to embrace DeepSeek? Can Alibaba leverage its Qwen ecosystem to challenge Tencent’s lead?
As technology advances at breakneck speed, the next wave of breakthroughs could come from anywhere. For now, all eyes are on Tencent, which is pushing the boundaries of what an AI-powered super-app can achieve.
See why it was a huge deal that DeepSeek was integrated into Tencent’s Yuanbao/ WeChat and what Tencent’s advantages are now in winning the domestic AI application race.
No wonder the supply chain is seeing an increase in Hopper demand after Hopper forecast was slashed last month