Honor, the Chinese smartphone maker, is set to invest $10 billion in AI technology over the next five years, expanding its product line to include AI-powered devices. This announcement comes in light of a challenging market as Honor prepares for an IPO and responds to increased competition. The company has garnered local government support to enhance its R&D capabilities.
China’s smartphone manufacturer Honor has announced plans to invest $10 billion over the next five years to enhance artificial intelligence capabilities in its devices. CEO James Li revealed this strategy during a speech at the Mobile World Congress (MWC) in Barcelona, where he emphasized the company’s ambition to transition from a smartphone-centric business to a broader portfolio inclusive of AI-integrated PCs, tablets, and wearables.
Honor aims to position itself favorably in the competitive smartphone market, which has become challenging due to increased pressure from rivals, notably its former parent, Huawei. Recent reports indicated that Honor experienced a drop in market share, falling from second to fourth place in Chinese smartphone shipments, possessing only 14.9% of the market.
As part of its growth strategy, Honor has also undergone a shareholder restructure that is expected to facilitate an upcoming initial public offering (IPO) though specific timelines have yet to be disclosed. This investment announcement aligns with a broader surge in AI investment across China, largely driven by interest in innovative technologies such as low-cost large language models developed by startups like DeepSeek.
Furthermore, local governments and various sectors, including home appliance manufacturers, are actively seeking to harness DeepSeek’s technology and embark on further AI research initiatives. Honor is reportedly receiving robust support from the Shenzhen local government, which includes funding for R&D, tax incentives, and assistance with international expansion efforts.
Honor’s strategic $10 billion investment in AI devices underscores its effort to diversify beyond smartphones and prepare for an IPO. The company’s response to competitive pressures within the market further illustrates its commitment to innovation in AI technology. This move aligns with a significant trend of increasing AI investments in China, highlighting the growing interest and support for technological advancements in the sector.
Original Source: www.tradingview.com
