Tencent's Chief AI Scientist Yao Shunyu argued that durable competitive advantages in artificial intelligence lie primarily at the product layer rather than in large language models themselves. Speaking during a 2026 Future Science Prize dialogue, Yao cited WeChat as an example, noting that AI embedded within the platform does not require the most powerful model to maintain its edge. Instead, access to user data such as schedules and social relationships creates barriers that competitors cannot easily overcome even with superior models. The discussion prompted investor Zhang Ya-qin to question whether frontier AI labs like Anthropic could sustain valuations in the $1 trillion to $2 trillion range under this framework. Yao, who now oversees Tencent's Foundation Model Department, did not directly address the valuation debate but reinforced his thesis on product-level defensibility.