Honor to Pour $10 Billion into AI Development
SHENZHEN, China – Chinese smartphone manufacturer Honor announced plans to invest $10 billion over the next five years in artificial intelligence development for its devices. The move comes as the company, formerly a unit of Huawei, prepares for an initial public offering (IPO), according to CEO James Li.
During a speech at the Mobile World Congress (MWC) trade show in Barcelona, Li stated that the Shenzhen-based company intends to become more than just a smartphone provider. The company is working to develop a comprehensive system of AI-powered PCs, tablets, and wearable devices.
In December, Honor revealed it had concluded a shareholder restructuring, bringing it closer to an IPO; however, no specific timeline has been revealed.
This announcement from Honor arrives amid a surge in Chinese AI investment, fueled by interest in DeepSeek’s cost-effective large language models. Various entities, including local governments and home appliance manufacturers, are looking to integrate DeepSeek’s technology or increase their AI research efforts.
Last year, Honor’s position in the China phone market slipped from second to fourth place, with a 14.9% market share. This shift came amidst renewed competition from Huawei, its former parent company, and substantial growth from Vivo, as indicated by consultancy IDC.
In August, Reuters reported that Honor is receiving extensive support from the Shenzhen local government, including funding for research and development, tax incentives, and assistance with overseas expansion.
