At its 2026 Q2 earnings call, Tencent Chief Strategy Officer James Mitchell said domestic token prices for the company’s AI cloud business are low but token production costs are far lower than market expectations, allowing the token business to remain gross-margin positive. He said WorkBuddy’s paid-user gross margin and margins on Tencent’s model services are already comparable with Tencent Cloud overall. WorkBuddy’s aggregate margin is lower because Tencent is subsidizing free users to grow sha

At its 2026 Q2 earnings call, Tencent Chief Strategy Officer James Mitchell said domestic token prices for the company’s AI cloud business are low but token production costs are far lower than market expectations, allowing the token business to remain gross-margin positive. He said WorkBuddy’s paid-user gross margin and margins on Tencent’s model services are already comparable with Tencent Cloud overall. WorkBuddy’s aggregate margin is lower because Tencent is subsidizing free users to grow share, but the paid cohort is generating healthy gross margins.