Honor Announces $10 Billion AI Investment Over Five Years
Chinese smartphone manufacturer Honor has announced a $10 billion investment in artificial intelligence (AI) development over the next five years. The company plans to expand beyond the smartphone industry and venture into AI-driven PCs, tablets, and wearable technology, as revealed by its CEO, James Li. The announcement was reported by Reuters.
Li made the declaration on Sunday at the Mobile World Congress in Barcelona. Previously, in December, Honor had disclosed that it had completed a shareholder restructuring process, paving the way for a potential stock market listing. However, the company has not provided a specific timeline for launching its initial public offering (IPO).
Honor's strategic move aligns with China's growing trend of AI investments. Recently, there has been significant interest in AI startup DeepSeek’s cost-effective large language models. From local governments to household appliance manufacturers, various entities are increasingly adopting DeepSeek’s technology and ramping up their AI research initiatives.
In 2023, Honor slipped from the second to the fourth position in China's smartphone market, holding a 14.9% market share. The shift was primarily driven by the strong resurgence of its former parent company, Huawei, and the rapid growth of Vivo.
Honor has been receiving financial support for research and development, tax benefits, and assistance in global expansion from the Shenzhen local government. In August, Reuters reported that Honor was benefiting from substantial government support, which could play a crucial role in strengthening its competitive edge in the market.
