Tencent’s chatbot Yuanbao has just surpassed DeepSeek to become the most downloaded iPhone app in China.
Yuanbao integrates Tencent’s proprietary AI technology, Hunyuan, along with DeepSeek’s R1 reasoning model. This event highlights the fierce competition in China’s AI industry, as major tech giants race to develop smart chatbots to attract users, according to Bloomberg.
Three of the five most downloaded free apps on China’s App Store are AI chatbots. Photo: Bloomberg.
Currently, three out of the top five free iPhone apps in China are AI chatbots, including Doubao from ByteDance, along with Tencent’s Yuanbao and DeepSeek.
DeepSeek’s rapid rise in January created a major boost for China’s tech and internet ecosystem. Companies are now rushing to accelerate investments and launch new AI products. Alibaba, for example, has started using DeepSeek as a benchmark and recently announced a $53 billion investment into AI.
Meanwhile, Tencent has integrated DeepSeek R1 into many of its products, including WeChat’s search function and the virtual assistant in its hit game, Peacekeeper Elite. Last week, Tencent also introduced Hunyuan Turbo, claiming it has a faster response time than DeepSeek.
Based in Shenzhen, Tencent is the world’s largest gaming company and owns WeChat, which has over 1.4 billion users. This massive user base has likely helped Tencent take the lead in the AI race, Bloomberg noted.
However, one big question remains unanswered: How will companies monetize these AI services? Most chatbots are still offered for free, and the trend of open-sourcing AI models is growing to attract developers—similar to DeepSeek’s strategy.
For now, the main priority is user acquisition. Tencent currently leads the competition, outpacing Alibaba and Baidu, even though these two companies have made larger AI investments than the Shenzhen-based tech giant.
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