Chinese smartphone maker Honor Device Co. plans to invest $10 billion over five years to become a major player in the artificial intelligence market. The company, which was spun off from Huawei Technologies Co., has announced a new corporate strategy centered on building an AI ecosystem focused on device-centric technology.
Honor’s CEO James Li outlined the plan at Mobile World Congress, where the company will collaborate with global partners such as Google, Qualcomm, and Microsoft to develop AI technologies. The company aims to create a new paradigm for AI devices in China’s “agentic AI era.”
The investment push is seen as part of a broader trend towards AI adoption across industries, particularly in China. Other major internet companies, including Alibaba Group Holding Ltd. and Tencent Holdings Ltd., have accelerated their AI updates and are competing with startups like DeepSeek.
Honor’s approach to AI technology differs from some competitors, which focus on hardware upgrades rather than device-centric solutions. The company is working closely with US partners, including Google Cloud, and has introduced a Windows-powered AI PC in its MagicBook Pro 14.
The move raises questions about the monetization potential of new AI technologies, particularly chatbots. With several companies betting on this technology to drive hardware upgrades, Honor’s effort must compete with these ventures as well as rising domestic competition in China.
Source: https://finance.yahoo.com/news/honor-device-pledges-10-billion-190224541.html