Pony Ma's Latest Internal Speech Exposed! Using AI to Improve Efficiency in Core Business, Exploring AI Native and New Battlefields

On November 12, news emerged that the claim of "Tencent laying off 50%" sparked attention, igniting discussions in colleague circles and trending online.

According to informed sources from Tencent, this statement is a misinterpretation of Pony Ma's speech during Tencent's 28th anniversary Linktime online live broadcast. The original words were: half of the people are like the "army," responsible for guarding the territory and using AI to improve efficiency in core business; the other half are like the "navy," exploring AI Native and new battlefields. This was simplified by the outside world to "laying off 50%."

In the disclosed original speech, Pony Ma made a public address regarding organizational changes and business strategies, with a relatively stern tone. He stated that the company recently reviewed its performance and budget, and for the first time ventured into heavy asset businesses, with financial and organizational strategies differing from the past light asset model, necessitating a stronger push for organizational change. This adjustment is not merely about cost-cutting but is a life-and-death transformation to adapt to new battlefields and strategies, requiring significant adjustments in personnel and organization, aiming for faster pace under existing manpower, where small teams can achieve big things.

He mentioned that AI has a significant impact on the search and content industries, stating that core business needs to "shift from land warfare to naval warfare," and cannot be complacent about safety; preparations must be made in advance to engage in naval battles. The organization needs to be flat and straightforward, testing skill transitions and rapid response capabilities. Traditional core business must improve efficiency while also deploying forces to explore the new battlefield of AI Native. He emphasized that this Linktime was more severe than in the past and hoped the team would understand and support this.

From a financial perspective, Tencent's mid-2026 performance showed that in the first half of the year, revenue was 401.243 billion yuan, a year-on-year increase of 10%; net profit attributable to shareholders under non-International Financial Reporting Standards was 136.32 billion yuan, also up 10%. Q2 revenue was 204.785 billion yuan, an 11% year-on-year increase; Non-IFRS net profit was 75.64 billion yuan, up 9% year-on-year. Revenue from value-added services, financial technology, enterprise services, and marketing services was 194.524 billion, 120.171 billion, and 81.736 billion yuan respectively, with marketing services increasing by about 21% driven by video accounts and AI advertising recommendations.

In terms of AI progress, Tencent is advancing from the intelligent layer, application layer, and infrastructure layer. On the model side, the official version of the mixed-element Hy4 was released in November; on the application side, users of WorkBuddy and CodeBuddy have significantly increased, and the WeChat AI agent "Xiao Wei" has been implemented, with Yuanbao integrated into multiple scenarios; on the infrastructure side, capital expenditure in the first half of the year was 84.72 billion yuan, with Q2 alone accounting for about 52.78 billion yuan, a year-on-year increase of 176%, used for AI computing power and data centers. As of the close on November 12, Tencent Holdings was at 398.8 HKD, down 2.64%.

Below is the transcript of Pony Ma's speech during Tencent's 28th anniversary Linktime online live broadcast that circulated online:

Let me start by saying that we have recently done a lot of budgeting, reviewing this year's performance and looking ahead. As my finance colleagues mentioned, we need to review our resources. In the past, we focused on light asset businesses, and this is the first time we are engaging in heavy asset businesses, where the financial and organizational strategies are different. In the face of new strategies, we must push for greater organizational change.

Some might think of the cost-cutting and efficiency improvements that began around 2021, focusing on core businesses. It is no longer simply about reducing costs structurally, but whether we can adapt to new strategies, new battlefields, and life-and-death transformations. The goal is not just cost reduction but adapting to new battlefields. Both personnel and organization need to make significant adjustments. I hope that under the existing manpower, we can work faster and small teams can achieve big things. The example of the game development team has already shown visible changes.

Many core businesses have risks to guard against. Initially, everyone thought AI would have a significant impact on search, but then felt that Google seemed to hold up; looking back this year, the waves have indeed come crashing in. Other industries and content sectors may feel safe, but from today’s sharing, we can see the waves getting closer. If we don’t move, we will panic. The distant waves have already swallowed up hills, and you can’t just sit back and enjoy the view. You need to be anxious, stand up, prepare for new strategies, find high ground, move resources, and board ships, shifting from land warfare to naval warfare. Within the existing army, we need to prepare who can board the ship and whether they can engage in naval battles. Frankly, it’s a bit late now; we can’t continue to feel safe leisurely.

Those who choose to adapt to new strategies must be decisive. It’s not like in the past where we have to coax, persuade, or negotiate conditions, or talk about whether they will be given management positions before they are willing to board the ship. The organization needs to be flat and straightforward, testing whether skills can be transitioned and whether we can respond quickly. Traditional core businesses must still be guarded, but efficiency must be improved. For example, let half the people guard while the other half engage in new battles. This is how I describe the situation visually to help everyone understand the current circumstances.

In today’s LinkTime, I hope to speak more sternly than before, saying the harsh words first, and I hope everyone understands and supports this.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.