Tencent Releases Huya 3 AI Model with 5.4% Hallucination Rate, Bernstein Maintains 'Outperform'

According to Bernstein, Tencent released its Huya 3 formal version yesterday (July 6), just 10 weeks after the preview launch. The model maintains its 295 billion total parameters and 21 billion active parameters, but delivers significant performance improvements: hallucination rate dropped from 12.5% to 5.4%, tool-calling stability improved, and overall reasoning capability now matches GLM-5.1 level. Bernstein maintained its 'Outperform' rating, noting Huya 3 is not a frontier model but provides sufficient capability to support Agent applications within the WeChat ecosystem. The analyst expects Tencent's AI strategy to shift focus from model development to commercial deployment, with future returns measured by Agent transaction scale rather than chatbot usage. B2B monetization through merchant subscriptions is likely the primary revenue model, the report suggests.
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