Tencent admits GPUs only pay for themselves when powering personalized ads

Chinese web giant Tencent struggles to earn a return on investment from GPUs – unless it uses them to power its advertising business. “If we buy GPUs and we deploy them into our ad tech, then that's a relatively short-cycle investment,” said Chief Strategy Officer James Mitchell during the company’s Q1 2026 earnings call. “The GPUs yield better targeting, higher click-through rates and higher revenue and profit on a pretty accelerated basis,” he said.