Recent investments of Tencent — Beijing, Tokyo, London.

3 innovation and digital news in 1 minute. Every Monday. Episode 409.

Beijing — Zhipu AI, LLM above all for video generation.

Zhipu AI gathered $400m backed by Tencent among others. They develop large language models (LLM) above all for video generation. Very much focussed on video for phones, iPhones explicitely. Ying video generator record is a 4k, 10 sec. and 60 frames per second generation. Opinion: Beyond video generation, Zhipu has a model called Character AI for human-like expression, exactly along with video generation. This is where many LLM in China are positioned — for a mobile, gaming generation. LLM in China? Around 45 of them (mainly small models), officially. They have to be approved by a central control institution.

Results are video and audio generation of the highest quality.

Tokyo — Card and expenses for SMEs, UPSIDER.

UPSIDER is a specialised fintech for SMEs in Japan, above all for companies scaling and on the stock exchange. A credit card with higher limit, strong role and risk management and expense management. UPSIDER claims 60.000 clients in Japan. Opinion: For us in Europe this is not a new service (Qonto, Pleo, Moss), but rather new in Japan. Why stock exchange companies of this size? The Tokyo stock Exchange is open for smaller companies, low threshold to IPO. Tencent in an investor in many fintech in Europe, like Qonto, N26, Raisin.

Tencent is quiet but strong in fintechs.

London — TrueLayer, as the name says

Tencent, again, with an investment in fintech. This time in a payment provider, very similar to Stripe. Payments, payouts, variable recurring payments, sign up services. A payment “layer” that has grown into a unicorn. Last week news: TrueLayer laid off a quarter of its staff. Opinion: A company with strong ups and downs. From being praised and financed up to a unicorn level to a big lay-off wave in November 2024. This is the “destiny” of a start-up? No, TrueLayer (in the research bit we did) doesn’t really differentiate from the other strong payment players.

Economies of it aren’t clear at all. Still a recent Tencent investment (October 2024).