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Morningstar says Tencent’s AI buildout won’t be perpetual cash burn

Morningstar analyst Ivan Su says Tencent’s AI buildout won’t be a perpetual cash burn. He expects the “Hy” large language model to improve rapidly after procuring computing power to train it.

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Tencent's AI buildout won't be a perpetual cash burn, Morningstar analyst Ivan Su says in a research note.

Tencent's Hy large language model should improve rapidly after procuring large amount of computing power to train it, the analyst notes.

If Hy disappoints, the hardware could be rented out to…