Tencent Acquires Microsoft’s WizardLM AI Team

Tencent Hires Microsoft’s WizardLM AI Team: What This Means for the Future of AI

Why did Tencent hire the WizardLM team from Microsoft? What is WizardLM, and how does this impact the AI arms race in 2025? If you’re searching for answers, here’s what you need to know. In a significant move within the artificial intelligence sector, Tencent has brought on board the core team behind WizardLM — an AI research group previously housed at Microsoft. This strategic hire reflects Tencent’s growing ambition in generative AI and underscores China's accelerating push to compete with global leaders like OpenAI and Google in the development of advanced AI models.

                Image Credits:Yuichiro Chino / Getty Images

The WizardLM group, based in Beijing, had quietly been making waves within Microsoft's AI research division. Known for developing powerful large language models (LLMs), WizardLM gained attention for its WizardLM-2 models, which were said to rival OpenAI’s GPT-4 in capability. However, the team’s trajectory took an unexpected turn in April 2024 when Microsoft abruptly pulled the WizardLM-2 models offline just a day after their release. According to the team, the removal was due to a missed step in the release process — toxicity testing — a reminder of the complex compliance and safety protocols involved in AI development.

Now, the WizardLM team has joined Hunyuan, Tencent’s internal AI division. Can Xu, a senior AI researcher formerly with Microsoft, confirmed via a post on X (formerly Twitter) that he and his team are now part of Tencent’s efforts to develop cutting-edge generative AI. Over recent months, Hunyuan has been rapidly releasing a suite of AI tools, including video generators and 3D object creation models, positioning itself as a serious contender in the global AI landscape.

One of the first outputs from this collaboration is Hunyuan-TurboS 0416, a new AI model that already claims to outperform open-source alternatives like Google’s Gemma 3 series. Qingfeng Sun, listed as a co-founder of WizardLM, highlighted the model’s superior performance in an X post, sparking interest and debate within the AI research community.

Tencent’s acquisition of WizardLM's talent is more than a simple hiring event — it’s a calculated move to leap ahead in the AI innovation race, tapping into high-value capabilities like natural language processing, large-scale transformer models, and generative AI applications.  

While it remains unclear how many researchers from the original WizardLM group have transitioned to Tencent, or the exact timing of the move, one thing is clear: Tencent is investing heavily in AI talent and infrastructure to shape the future of generative AI. As the competition intensifies between Chinese tech giants and U.S. counterparts, the addition of WizardLM's expertise could give Tencent a much-needed edge in commercial AI development, enterprise SaaS, and cloud-based AI services.

Stay tuned as we track how Tencent’s AI ambitions evolve — and what this means for the global AI ecosystem in 2025 and beyond.

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