Tencent will direct $70 billion to develop blockchain and IT

by in Blockchain News

Tencent blockchain investment

Chinese Internet giant Tencent is going to allocate 500 billion yuan ($70 billion) for about five years to develop IT infrastructure. It is reported by Reuters.

The funds will go towards the implementation of cybersecurity, AI, and cloud computing. Other spheres include blockchain, data centers, supercomputers, IoT, 5G, and etc.

Tencent's plans are consistent with the announcement by the Chinese authorities of a new stage in the structural renewal of the economy by increasing its technological component.

Related: Chinese giant Tencent launched own blockchain accelerator

The company expects that these areas will become a long-term growth driver due to the reorganization of work processes by government agencies. Tencent believes that the pause in the investment in advanced technologies resulting from the outbreak of COVID-19 will be short-lived.

Increasing the emphasis on strategy on corporate clients is in the interests of the company itself. Recently, there has been a slowdown in the growth of the WeChat messenger divisions and popular computer games, which brought Tencent success and fame.

We wrote that Tencent planned to oversee the development of 30 companies as part of the launched blockchain accelerator. Participants could be both start-ups and existing companies. The selection criterion is the presence of at least one completed round of financing and blockchain as a key area of work. You can read more about this in our article.