As cloud gaming brings an all new era to the largely unchanged video gaming industry, some of China’s biggest tech companies want a piece of it. While most cloud gaming launches have so far been from US tech giants, China’s Tencent Holdings announced in a statement on Friday, the launch of a co-innovation lab with Huawei in order to develop a cloud gaming platform.

The collaboration between two of China’s biggest tech companies will involve building of Tencent’s game matrix cloud gaming platform, using computing power from Huawei’s Kunpeng Processor. The Huawei production is known to significantly improve processor performance by optimizing branch prediction algorithms, increasing the count of execution units and improving the subsystem architecture among other things. The stated features make it the industry’s highest performance ARM-based CPU server till date.

Tencent has off late, become a formidable entity in the gaming arena, riding on the back of some massively successful global titles. The internet and entertainment giant is an equivalent of Facebook or Google in China. Owning a multitude of productions by game developers and publishers, it has has a tremendous impact on the global market of its sector. Owning the most popular games globally, the extent of its monopoly can be measured through instances like the one where its two investments were competing with each other in the market. An example of the same is the fact that Tencent is capable of providing China with both PubG and Fortnite.

The collaboration however entails more than just cloud gaming services. The two will be exploring artificial intelligence and augmented reality in games as well.