There has been a boom in popularity of cloud gaming with Google Stadia, Geforce Now, Project xCloud and a number of others joining the fray and eliminating the need for having a powerful gaming PC or console.

Chinese tech giants Huawei and Tencent are now working together to enter the cloud gaming market as well according to Tencent, one of the world’s biggest game companies.

Additionally, the statement mentions that the collaboration between the two will involve tapping into Huawei’s Kunpeng processor to work with Tencent’s cloud gaming platform known as GameMatrix. The two brands will also explore the possibilities of applying artificial intelligence and other technologies for augmented reality (AR) based gaming.

Huawei’s hardware expertise combined with Tencent’s experience in the gaming industry will make for a formidable partnership that could give the competition a run for its money.

GameMatrix will debut in China first and will likely stay exclusive to the region for a while. The companies will use this opportunity for public testing and iron out the kinks before the service is ready to hit the global market.

It’ll be interesting to see how the service holds up against the pre-existing robust competition in the market.