Honor plans to invest $10 billion in AI development over five years, transforming its focus from smartphones to AI-powered devices. This move aligns with a broader surge in Chinese AI investment. Amidst increasing competition in the smartphone market, Honor seeks to enhance its technological capabilities and adapt for an upcoming public listing.
Honor, the Chinese smartphone manufacturer, announced it will invest $10 billion over the next five years into artificial intelligence (AI) for its devices. CEO James Li disclosed this plan during a speech at the Mobile World Congress (MWC) in Barcelona, emphasizing the company’s ambition to transition from being solely a smartphone producer to developing a diverse ecosystem of AI-enhanced PCs, tablets, and wearable technology.
This announcement follows Honor’s recent completion of a shareholder restructuring, positioning the company closer to an initial public offering (IPO) without a specified timeline. Additionally, Honor’s investment comes at a time when the Chinese AI sector is experiencing substantial growth, driven by the success of startups such as DeepSeek, which offers affordable large language model technologies attracting significant interest from various industries.
Last year, Honor dropped from second to fourth place in the ranking of smartphone shipments in China, holding a 14.9% market share amidst intensifying competition with its former parent company, Huawei, and a rise in prominence from competitors like Vivo, according to consultancy IDC. Furthermore, reports from August indicated that the Shenzhen local government is providing substantial backing to Honor through research and development grants, tax incentives, and support for international expansion.
In summary, Honor’s $10 billion investment in AI signifies a crucial strategic shift towards becoming a technology leader beyond smartphones. With strong government support and emerging market trends, Honor aims to regain its competitive edge in a rapidly evolving industry. The company’s commitment to innovation may position it favorably ahead of its anticipated IPO and amidst growing national interest in AI technology.
Original Source: indianexpress.com
